Defense Transportation Journal by Defense Transportation Journal

66th Annual NDTA Forum & Expo Wrap UP

December 2012

www.ndtahq.com

Understanding the New Transportation Bill What You Need to Know

Strategic Education Bridges the Gap Faster If Offered Early to Company Grade Officers Awards Photo Album

Page 33

334

Logistics. Right Now. NATIONAL SECURIT Y

SAIC understands that in military logistics, getting the right part at the right cost to the right place at the right time – every time – to ensure mission readiness is critical. We’ve successfully managed the joint logistics integration for MRAPs in theater, and strengthened the supply chain for DoD land and aviation tires around the world. Smart people solving hard problems. Visit us at saic.com/logistics

NATIONAL SECURIT Y • ENERGY & ENVIRONMENT • HEALTH • CYBERSECURIT Y

NYSE: SAI

maersklinelimited.com

Stay informed with Maersk Customer Corner

Using our new site, U.S. military customers get real-time port and transit updates; download U.S. flag sailing schedules; and help ease the booking process with simplified service guides. Stay in the know.

customercorner.maersklinelimited.com

3 WAYS LOGISTICS KEEPS YOU IN COMMAND OF ANY SITUATION. The military runs on logistics, and no one understands logistics better than UPS. From factory to foxhole for military support, or from agency to aid station for humanitarian relief, wherever it’s mission-critical, we’re mission-ready. 1) GLOBAL REACH As the world’s

2) OUTSTANDING RELIABILITY

3) ONE DAY QUOTE DESKS

largest transportation company,

Proven speed and innovative

UPS offers time-sensitive quotes

UPS serves more than 220 countries

technology enable us to deliver

in one day for your most urgent

and territories with an integrated

more guaranteed packages on

shipments, including air, ocean

network that can move any weight,

time around the world, and remain

and LTL freight. Our team is

anywhere by land, air and sea. Our

flexible to easily respond to

available for extended business

broad portfolio of services redefines

evolving demands and unforeseen

hours Monday-Friday to provide

end-to-end support to maximize

challenges with automated shipping

competitive pricing when you

your readiness.

systems and full in-transit visibility.

need it most.

One Day Quotes for air and ocean freight: govsupport@ups.com or 1-888-830-3570 One Day Quotes for LTL freight: ltl.upsfreight.com or 1-800-227-8046

thenewlogistics.com/government

December 2012

FEATURES December 2012 • Vol 68, No. 6 Publisher

The NDTA/MSC Internship Program Provides Short and Long-term Opportunities to Students

By Sharon Lo

LTG Ken Wykle, USA (Ret.) Editor

Kent N. Gourdin Managing Editor

Sharon Lo | sharon@ndtahq.com

Understanding the New Transportation Bill: What You Need to Know

By Grant E. Goldsmith, CRM, CIC, PGDMA

Contributing editor

Denny Edwards

Circulation Manager

Leah Ashe

Copy editor

Jeff Campbell Publishing Office

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

Strategic Education Bridges the Gap Faster If Offered Early to Company Grade Officers

Interview with Captain Carlos “Mike” Sanford, USA

NDTA Forum & Expo Wrap-Up

NDTA Awards Photo Album

Debbie Bretches

Advertising Account Manager

Jim Lindsey

Advertising & Production Carden Jennings Publishing Co., Ltd. Custom Publishing Division 375 Greenbrier Drive, Suite 100 Charlottesville, VA 22901 434-817-2000, x261 • F 434-817-2020

departments Editorial | Dr. Kent N. Gourdin . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Defense Transportation Journal (ISSN 0011-7625) is published bimonthly by the National Defense Transportation Association (NDTA), a non-profit research and educational organization; 50 South Pickett Street, Suite 220, Alexandria, VA 22304-7296, 703-751-5011. Copyright by NDTA. Periodicals postage paid at Alexandria, Virginia, and at additional mailing offices. Subscription Rates: One year (six issues) $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. Postmaster: Send address changes to: Defense Transportation Journal 50 South Pickett Street, Suite 220 Alexandria, VA 22304-7296

President’s Corner | LTG Ken Wykle, USA (Ret.) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Chapter spotlight | Jeff Campbell. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40 Pages future | COL Denny Edwards, USA (Ret.) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41 professional development | Irvin Varkonyi. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45 honor roll. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46 chairman’s circle. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47 Bookshelf Ideas. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48 index of advertisers. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48

NDTA Headquarters Staff LTG Kenneth Wykle, USA (Ret.) President COL Mark Victorson, USA (Ret.) VP Membership

The NDTA/MSC Internship Program Provides Short and Long-term Opportunities to Students

COL Dennis Edwards, USA (Ret.) VP Marketing | Corporate Development Patty Casidy VP Finance Lee Matthews Marketing | Corporate Development Manager Leah Ashe Manager, Database Sharon Lo Manager, Meetings and Publications Jeff Campbell Manager, Chapter and Membership Support Rebecca Jones Administrative Assistant to the President Carl Wlotzko Coordinator, Banquet & Special Events For a listing of current Committee Chair-persons, Government Liaisons, and Chapter & Regional Presidents, please visit our Association website at www.ndtahq.com. Editorial Objectives The editorial objectives of the Defense Transportation Journal are to advance knowledge and science in defense logistics and transportation and the partnership between the commercial transportation industry and the government transporter. DTJ stimulates thought and effort in the areas of defense transportation, logistics, and distribution by providing readers with: • News and information about defense logistics and transportation issues • New theories or techniques • Information on research programs • Creative views and syntheses of new concepts • Articles in subject areas that have significant current impact on thought and practice in defense logistics and transportation • Reports on NDTA Chapters Editorial Policy The Defense Transportation Journal is designed as a forum for current research, opinion, and identification of trends in defense transportation and logistics. The opinions expressed are those of the authors and not necessarily of the Editors, the Editorial Review Board, or NDTA. Editorial Content For a Media Kit and Archives, visit www.ndtahq.com/education_dtj.htm 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 Sharon Lo, Managing Editor, DTJ NDTA 50 South Pickett Street, Suite 220 Alexandria, VA 22304-7296 703-751-5011 • F 703-823-8761 sharon@ndtahq.com

4 |

Defense Transportation Journal

By Sharon Lo, Managing Editor, DTJ Manager, Meetings & Publications, NDTA

n October I attended an Industry Day hosted by the Supply Chain Management Society at the University of Maryland. I was very impressed by the students that I met there. They were bright, energetic about what they were learning, and many were pursuing challenging dual degrees. My main purpose in going was to make sure that the students were aware of what benefits NDTA provides them. Most students, and NDTA members in general, know that the organization provides scholarships, both on the national and chapter levels, in addition to educational and networking opportunities. However, not everyone is aware of what I would call one of the most valuable programs NDTA offers—the NDTA/MSC Summer Intern Program. This year marks the third year for the NDTA/MSC Summer Intern Program. The mission of this program is to provide internships for qualified students and ultimately to provide the Military Sealift Command (MSC) with a pool of potential candidates for selecting full time government employees. As with most government departments, the current workforce is ageing and many are reaching retirement eligibility. MSC is seeking programs to develop qualified replacements for future retirees. MSC supports our Nation by delivering supplies and conducting specialized missions across the world’s oceans. It seeks to be the leader in innovative and cost-effective maritime solutions. As an educational organization that consistently promotes the development of the future leaders of the transportation and logistics industries, NDTA was the perfect partner to bring this program to fruition. The summer internship program is for rising college juniors and seniors. Individuals who have received an NDTA schol-

December 2012

arship, or other highly qualified students, will receive priority placement for a paid summer internship with MSC. The location for the internship may be at the Norfolk, Virginia; San Diego, California; or Washington, DC MSC office. The intern candidate may state a location preference. To be eligible for the internship, an applicant must be a previous NDTA scholarship recipient or other highly qualified student, who is a member of NDTA or dependent of an NDTA member. In addition, the applicant must have successfully completed his or her sophomore or junior year in college, still be in a student status, and must be a citizen of the United States of America. Interested students can find more information, including the application form, on the NDTA website (select “Programs” under the Education tab). Each year, completed applications must be mailed back to NDTA Headquarters, postmarked no later than January 15th. Once applications are received, the NDTA Scholarship Subcommittee of the Forum, Education and Professional Development Committee will prepare a list of recommended candidates and provide the names to MSC for final selection. MSC will then notify the winning candidates no later than March 30th. I sincerely hope that NDTA’s student members will take into consideration applying to this worthwhile program. While there has been a slight drop in the unemployment rate from the beginning of the year, those under the age of 25 still face the highest unemployment rate out of all age groups. I say this not to be pessimistic, rather, I want to encourage all of our student members to consider the long-term value of the choices you are making. A successful internship now can make a real difference when you graduate, and believe me that year or two will go by quickly! DTJ

EDITORIAL NDTA Annual Forum 2012 Dr. Kent N. Gourdin, Editor, DTJ Director, Global Logistics and Transportation Program College of Charleston

or those of you unable to make the Forum this year, you missed a good one. The location was certainly unique, and the sessions were outstanding across the board. While there, several things really struck me about transportation in Alaska. One was the extent to which defense transportation needs have shaped the state’s logistics infrastructure. Another was the way personal and commercial movement has evolved to meet the needs of those living and working in such an unusual environment. Most are familiar with the heroic efforts undertaken to build the Alaska-Canada Highway at the beginning of World War II. In eight months between 1942 and 1943, 10,607 soldiers (over a third of whom were African-American) built a road 1,522-miles long from Dawson Creek, British Columbia to Fairbanks, Alaska. Now known as the Alaska Highway, the road continues to provide the primary overland route connecting the 49th state with the “lower 48.” In fact, the route is a vital economic military lifeline even today because the only other surface access is via barge from Seattle. Right around the same time, in 1941, the US Army began construction of the railroad spur from Whittier to Portage. This line became Alaska’s main supply link for the war effort. The advantages of using Whittier as a rail port was that it was a shorter voyage, it reduced exposure of ships to Japanese submarines, reduced the risk of Japanese bombing port facilities because of the bad weather, and it avoided the steep railroad grades required to traverse the Kenai Mountains. On April 23, 1943, workers completed the spur, which consisted of a 1-mile tunnel through Begich Peak and a 2.5-mile tunnel through Maynard Mountain now known as the Whittier Tunnel, thus linking Whittier to the Alaska Railroad’s main line at Portage. Vehicles were transported through the

tunnel via flatcar, but demand became so high that the railroad could no longer support it. As a result, work began in 1998 to change the tunnel into the controlled one-lane facility with alternating train and vehicle use that exists today. Freight transportation occurs through some of the harshest weather in the world. Carlile Transportation had a tractor in the Exhibit Hall, along with several of the drivers and managers featured frequently on the History Channel’s Ice Road Truckers series. They were all very friendly and more than willing, eager even, to talk about long-haul trucking in Alaska. In so many words, they said they didn’t think their jobs were anything out of the ordinary. Anyone who has watched the show would probably beg to differ, the theatrics notwithstanding. As a diehard fan of the show, I thoroughly enjoyed talking with these folks. I must admit that I found it hard not to gush. Freight is not the only

thing that moves up the ice road. One driver shuttling Forum attendees between the hotels and convention center said that their company spends the summers handling tourists, and the winters moving workers to and from the North Slope. Given the vastness of Alaska and the general lack of roads, many people rely on private aircraft rather than motor vehicles to meet their mobility needs. In fact, many of those aircraft are floatplanes. The state-owned, public Lake Hood Seaplane Base is the largest such facility in the world and is located next to, and under the air traffic control of, Ted Stevens Anchorage International Airport. There are over 800 aircraft domiciled here, and the base handles approximately 190 movements a day. I think I can honestly say that I have never seen so many floatplanes in one place. I hope I have whet your appetite for next year’s Forum in San Antonio. I know I haven’t mentioned anything about the professional sessions, but they are covered elsewhere in this issue. Suffice to say that, for me, a successful Forum combines both professional and personal opportunities for growth. Anchorage provided both in spades. I’m sure San Antonio will do the same, so plan to be there. I know I will be. DTJ

www.ndtahq.com | 5

6 |

Defense Transportation Journal

December 2012

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

he Anchorage Forum is complete and San Antonio is on the horizon. Before we begin to focus on 2013 events, I want to thank everyone who attended the Forum. I understand the challenges many of you face during these difficult economic conditions, the time needed to travel to Anchorage, the time “out of the office”, and appreciate your outstanding support of NDTA. We consistently strive to offer a rewarding program and contribute to each attendee’s education, training, and professional development. Some have commented that all of the featured speakers were government or military. This was by design, due to the recent OMB guidance indicating military/government attendees should have an official role at conferences. In an effort to maintain balance many of the session leaders and panel members were from industry. This Forum wrap up edition of the DTJ, includes a summary of the speakers’ remarks and the sessions’ content. Each speech was also videotaped and may be viewed by logging in to the member’s section of the NDTA website. Please provide me (ken@ndtahq.com) your feedback on the value of the Forum and the videos. We also want to congratulate our awardees: Mrs. Marcia Taylor, President and CEO of Bennett International Group and winner of NDTA’s National Transportation Award; General Ann E. Dunwoody, USA (Ret.), former Commander of the Army Materiel Command who won the National Defense Leadership Award; Vice Admiral Mark Harnitchek, USN, Director, DLA and winner of the NDTA DOD Distinguished Service Award; General Raymond Johns, Jr., USAF, Commander, Air Mobility Command, who was inducted into the Ancient Order of Saint Christopher; Colonel Denny Edwards,

USA (Ret.), winner of the NDTA President’s Award, and Mrs. Karen Edwards who was recognized with the Patron of the Wheel Award for her 20+ years of volunteer service to NDTA. Thank you for your contributions in support of our economy and National Security. We also congratulate the men and women of USCENTCOM’s Strategic Movements Center who received the Innovative Logistics Service Award, as well as our Military Unit Award recipients, corporate, chapter and individual awardees. NDTA sent a short survey to all attendees soon after the Forum. To those who responded, thank you. To all members I ask for your continued feedback via email on the Association and the Anchorage Forum. Is the professional program structured about right—the speakers and roundtables in the morning, Expo at noon, and the training and educational breakout session in the afternoon? Provide suggestions for improvements. Are the Expo periods the appropriate length and properly placed in the daily program? Please comment on the training, education, professional development, and networking opportunities or any other aspect of the Forum. To provide the best value for you we need your feedback—positive and critical. Responses from only a few attendees are insufficient to make changes in the professional program. Email your comments and suggestions directly to me at ken@ndtahq.com. Results of the survey show the primary reason for attending the Forum is networking and the professional program; the most beneficial networking opportunities were the Expo Hall, the Sunday opening reception, and the reception prior to the Chairman’s Awards Dinner; NDTA’s pre-Forum information sharing processes, (on a scale of 1 to 5 with

5 being the best), ranged from 3.83 for Global Match (new this year) to 4.5 for individual online registration; the top rated speakers were The Honorable Alan Estevez, General Fraser, General Johns, and VADM Harnitchek; the most valuable breakout sessions were “The Service Contract Act—implications for government contractors”, “Future Acquisition”, and “How to do business with the government”. Many individual survey responses included positive comments about all aspects of the event. We also received comments about time/distance to Anchorage and the resulting expense; the desire for more sessions to solve specific issues; the duck drop taking too long; and the desire for more mid-grade military/ government attendees from installations with whom industry interacts daily. The complete survey results will be posted on our website. Thank you again to those continued on page 48

W EL C ME

NEW corporate

members as of December 1, 2012

Chairman’s circle • A Team Logistics LLC Sustaining patrons • Krown1 Fzc • MV Transportation, Inc. Regional patrons • Cargo Experts Corp.

corporate member upgrades Chairman’s circle Plus+ • Rock-It Cargo USA, LLC

www.ndtahq.com | 7

Understanding the New Transportation Bill

What You Need to Know By Grant E. Goldsmith, CRM, CIC, PGDMA President, Overwatch, Inc.

his summer, significant legislation passed on Capitol Hill that not only provides about two years of highway funding, but also permanently changes federal law regarding freight transportation. Truckers, transportation brokers, and domestic forwarders, will experience considerable changes in the way they conduct business.

Registration Numbers and Authority

Increased Surety Bond

Perhaps the most reported-on provision of the new Transportation Bill is the requirement for freight brokers and domestic forwarders to each post a $75,000 surety bond, a boost from the current $10,000. As a result, all freight brokers and forwarders will need a new bond, and have until October 2013 to comply. Customs brokers and air freight forwarders are exempt from the changes when arranging transportation as part of a greater international move. The change has been resoundingly welcomed by supporters, who say the increase will reduce fraud in the industry. Surety providers will also face increased oversight from the Federal Motor Carrier Safety Administration. Any financial security amount must consist of assets readily available to pay claims, without resorting to personal guarantees or collection of pledged accounts receivable. Re-Brokering Freight

It is now illegal for motor carriers to accept freight as a carrier, then broker the load out (unbeknownst to the shipper or broker that tendered the freight) to another carrier, unless the first carrier discloses this fact and also has the proper authority and corresponding bond. Interlining, however, is allowed, but the carrier must physically transport 8 |

Defense Transportation Journal

the cargo itself, at some point in transit. Severe penalties will be enacted for re-brokering freight without a license, including civil penalties up to $10,000 per violation and unlimited liability for payments to “injured parties.” Payment liability is not just on that of the legal entity, but also to individual officers, directors and principals.

Because motor carriers are now forbidden from re-brokering freight without the proper authority and bond, many motor carriers may also seek broker authority in the coming months. Confusion regarding which authority a company is operating under could still lead to unintentional assumption of liability and legal action for failing to make a proper disclosure as the nature of the company’s role. The fact that a company acts as a motor carrier and a broker under the same name, at the same address, with the same employees answering the same phones and using the same email accounts, easily exacerbates the possibility that the company’s role could be misunderstood. To assist with these problems, the Department of Transportation will issue distinctive registration numbers that indicate the type of activity a company operates under (e.g., motor carrier, broker, freight forwarder). The authority given to a particular entity will govern the transaction. By placing all of these provisions into law, they can be enforced through the courts by the private sector, without resort to action by the FMCSA. Licensing

To obtain a license to operate as a broker or forwarder, companies must

December 2012

employ an officer with at least three years of industry experience or certified training requirement. All broker and forwarder licenses must be renewed every five years. There is no grandfather amendment in this legislation, all brokers and forwarders must comply. Electronic On-Board Recorders (EOBRs)

The new law also contains a provision to require electronic on-board recorders for heavy trucks engaged in interstate commerce, but this provision continues to be debated. The House of Representatives recently passed a bill to prohibit FMCSA from spending money to implement a mandate for EOBRs. Reincarnated Carriers

The FMCSA now has more power to investigate companies who disobey regulations, only to close and then re-open under a new name. The law expands upon the reasons why motor carriers can be shut down, and the FMCSA can revoke a company’s authority if its officers show a pattern of avoiding compliance. It’s important to note that the above highlights are only a portion of the new 600-page law. Please continue to monitor upcoming developments and new regulations from the FMCSA in implementing these new requirements. Overwatch, Inc. is a division of Avalon Risk Management and a Regional Member of NDTA. Avalon Risk Management is a premier provider of insurance and surety solutions for the transportation industry, and offers the only Errors & Omissions policy endorsed by the Transportation Intermediaries Association. For more information, visit www.avalonrisk.com. DTJ

FREEDOM Whether it’s military tanks or disaster relief supplies, Landstar Government Services delivers. Our proven track record and unparalleled commitment to safety ensures U.S. government agencies worldwide get every shipment, every day. As a leader in protective services and movement of arms, ammunition and explosives, Landstar is ready to support our armed forces. Landstar has a reputation for providing the same care and precision whether transporting pieces of American history or moving America into the future.

Landstar Government Services delivers freedom from worrying about your most demanding transportation and logistics needs.

Just one phone call delivers access to complete over-the-road, expedited, air and logistics services through a network of more than 1,300 independent sales agent locations and more than 32,000 available truck capacity providers. For shippers looking for solutions to help manage bidding, scheduling, shipping, tracking, invoicing and reporting, Landstar offers cost-effective, technologybased tools along with our extensive array of transportation services to address supply chain needs from basic transportation management to highly complex enterprise solutions.

Safe. Reliable. Flexible. That’s how Landstar delivers freedom.

1-800-443-6808 • www.landstar.com SUPPLY CHAIN SOLUTIONS•AIR•OCEAN•RAIL INTERMODAL•TRUCKLOAD•LTL•HEAVY HAUL/SPECIALIZED•EXPEDITED

Strategic Education Bridges the Gap Faster If Offered Early to Company Grade Officers Interview with Captain Carlos “Mike” Sanford, USA

SSFP Inaugural Class Photo

he Institute for Defense and Business (IDB) is a nonprofit research and education institute formed in 1997 by the University of North Carolina (UNC) at Chapel Hill and the state of North Carolina. The IDB fosters shoulder-to-shoulder partnerships among the Department of Defense, the Department of Homeland Security, other government agencies, and the private sector to achieve excellence and innovation through research and education. The most recent addition to the institute’s programs is the UNC-IDB Strategic Studies Fellows Program (SSFP). Created at the request of the US Army and offering graduate-level credit in Strategic Studies, this five-week course teaches high-potential senior captains to look at national security issues from a more strategic level. Recently the DTJ caught up with Captain Carlos Sanford who shared his experience as a graduate of the inaugural class:

10 |

Defense Transportation Journal

CPT Sanford briefing about coalition and joint training for the group project.

How would you characterize your experience? It was an incredibly dynamic experience and one that has significantly changed the way I think about things. As a Logistics Officer, I now have a better understanding of how our Army operates from the highest

December 2012

levels. For the past 11 years our Army has been at war and an argument can be made that throughout that time there has been a significant decrease in educational opportunities, as requirements demanded Company grade officers to serve “downrange”. Times are changing—company grade officers have been entrusted to take on more responsibility during these times. That being said, a lot of junior officers have a wealth of experience and it should be leveraged in the institutional environment. What would you say is the most important thing you learned from the program? I learned that as a strategic thinker you must think objectively. Thinking this way can often times stimulate dialogue while formulating new and innovative ideas. As the Army experiences difficult times through budget cuts and constrained resources, we

Total end-to-end transportation solutions for your oversized cargo Farrell Lines, a leading U.S. flag roll-on, roll-off carrier, offers flexible routings and schedules from the U.S. to the Middle East and back to meet your most pressing needs. We recognize the importance of getting your vital cargo to its final destination. With access to an extensive ocean and inland global network, and local customer service, we make it possible.

www.FarrellLines.com â&#x20AC;˘ Tel. (757) 852-3266

must be able to think through and create opportunities efficiently. As a Transporter, I think that business practices with industry partners will undoubtedly change. How was the program formatted? The Army selected 25 Captains to attend the pilot offering. Once we arrived to Chapel Hill, NC, we attended a social hosted by the IDB staff. The guest speaker was GEN William Tuttle, USA (Ret.), who spoke about learning as much as we could from the program and building relationships with our peers. Each week had a theme, from civil-military relations to negotiations. The faculty was comprised of a distinguished group of professors from the UNC at Chapel Hill and Duke University. The faculty was outstanding. We were challenged each and every day with thought provoking topics that I’m still researching today. This program goes hand-in-hand with the life long learning process within the Army’s leadership construct. As transporters we must figure out innovative ways to support the warfighter

without fail. I believe that this program provided a curriculum that illustrated how civilians and military work together to accomplish some of the most complex tasks the Army is dealing with. Was the level of work required from you difficult? I’d have to say yes, simply because of the time requirements and constraints. The professors expect every student to read and come prepared for the next day—it was often extremely time consuming. I would tell future students of the program that it behooves them to come to class prepared because it is a discussion-based program. The professors require you to take a position and really argue for it. Would you recommend this program to other officers? Yes, I see this as the way forward for educational programs in the military. This is a program that I think will definitely help company grade officers gain a better understanding about strategy. As we draw the force down and become more joint

At Overwatch, we specialize in global, high-risk insurance. We support you in all areas of the insurance process and have practical experience developing, structuring and procuring insurance solutions for multi-national companies.

• • • • • • • • • • •

Aviation & UAV Insurance Commercial Insurance Employee Insurance Marine Insurance Piracy Insurance Government Contractors SDDC and Transportation Bonds Security Companies Energy Risk Environmental Risk Emerging Risks

Our solutions are tailor-made to our clients’ requirements and risk appetite. For more information, visit www.avalonrisk.com

12 |

Defense Transportation Journal

December 2012

Team Continental- Pictured from left to right, CPT Mike Sanford, CPT Audrey Smith, CPT Candace Fisher, CPT Parker Hahn and CPT Paul Lee. Group Project: How will the Army need to adapt its educational and training programs to meet these needs? How will the Army need to interact with other elements of the Armed Forces and other US agencies to accomplish the strategic objectives?

in nature, we must understand the bigger picture. Most company grade officers concern themselves with what they have to deal with at the moment. I think that times are changing and we must train for it all. In addition, the program is a true broadening experience—you are treated more like a graduate student than an army officer, which put us outside of our comfort zone in some ways. DTJ

The CusTomer serviCe youâ&#x20AC;&#x2122;d expeCT,

from a Brand you know and love.

And Southwest Charters provides the sophistication business travelers want. Southwest Charters now has the ability to accept bookings two years or more in advance to anywhere in the Southwest Airlines network, plus most other domestic locations. A staff of seasoned Employees will provide the exceptional Customer Service you love, in addition to business amenities such as catering. Southwest Airlines takes your business travel needs seriously, and Southwest Charters makes it more personal than ever before.

For more information, visit www.southwest.com/html/travel-tools/charter.html

www.ndtahq.com | 13

14 |

Defense Transportation Journal

December 2012

rtu nities

i New Front

N ew O s– p

M & EXPO FORU Anchorage, Alaska September 22-26, 2012

Thank you to Supreme Group USA, LLC for hosting the Forum Professional Program. Remarks from Keynote and Featured Speakers are abbreviated. Please login to the NDTA website (www.ndtahq.com) to view complete videos of each speech, in addition to breakout session presentations.

>> >>

The Forum DTJ “Flip Book” is online (see DTJ archives) Plus, check out photos on the NDTA website and on our Facebook page

The DTJ Wrap-Up is brought to you by the NDTA Forum Press Team:

NDTA would like to express sincere appreciation to the volunteers, attendees, program participants, exhibitors, and sponsors whose contributions helped make the 66th Annual Forum and Expo such a success!

Thank You!

• • • • • • • •

Jeff Campbell Kent Gourdin Donna Johnson Sharon Lo Mike McVeigh Bob Reilly Jann Sherrill Brian Tracy

The NDTA press team works before, during and after the Forum to provide coverage of the speakers, panels, and events of the week. They conduct interviews and prepare notes that are used to provide accurate, educational information for NDTA members. Thank you press team!

Find Even More Forum Resources Online Login to the members’ section of the NDTA website to view Forum Presentation Materials, including session presentations, speaker bios and videos.

Material presented in the Forum Wrap-Up Section of the DTJ is intended to provide an overview of presentations and is by no means encyclopedic. This information does not necessarily represent the official position of the DOD, corporate members or NDTA. We regret any errors or omissions.

www.ndtahq.com | 15

Exhibitors and Sponsors

exhibitors FEDEX Final Mile Logistics General Dynamics GlobalTrak Greatwide Truckload Management Hanjin Intermodal America Hapag-Lloyd USA, LLC Hertz Corporation Hilton Worldwide Horizon Lines, LLC InterContinental Hotels Group (IHG) J B Hunt Transport, Inc. JAS Forwarding Kalitta Charters, LLC Krown1 FZC Landstar System, Inc. Lockheed Martin Lynden M-Pak, Inc. Maersk Line, Limited Marriott International Matson Logistics/Navigation Medallion Transport & Logistics, LLC Mercer Transportation Co. Naniq Global Logistics, LLC. National Air Cargo NAVSUP Business Systems Center NDTA North Pole Chapter NDTA Headquarters Panther Expedited Services, Inc. PD TIS and PD J-AIT Pilot Freight Services PODS Enterprises, Inc.

1-800-PACK-RAT ABF Freight System, Inc. AIT Worldwide Logistics, Inc. Alaska Air Cargo/Alaska Airline Alaska Veterans Museum Allswell Supply Company Apex Logistics Group APL Limited ARC Atlas Air/Panalpina Avis Budget Group Bennett Best Western International Blkbird, Inc. Boyle Transportation C. L. Services, Inc. CAKEBOXX TECHNOLOGIES Carlile Transportation Systems Central Gulf Lines, Inc. Chapman Freeborn Airchartering Choice Hotels International Citi Colorado Technical University Coyne Airways Crowley Maritime Corporation Damco DB Schenker DEFENSE LOGISTICS AGENCY DHL Dollar Thrifty Automotive Group Echo Logistics Erudite, Inc. Farrell Lines

Port of Port Arthur Port of San Diego Portus Priority Solutions International Professional Home Staging and Design R&R Trucking Radiant Logistics Partners LLC Raith – CTS Logistics Sealed Air Corporation SEKO Worldwide SkyBitz Sourdough Express Inc. Supreme Group USA, LLC The Pasha Group The Port of Virginia/Virginia International Terminals Total Quality Logistics Totem Ocean Trailer Express Transgroup Worldwide Logistics, Inc. Tri-State Motor Transit Co. Tucker Company Worldwide U.S. Bank US Department of Transportation Maritime Administration US General Services Administration United Seamen’s Service Universal Truckload Services Inc. UPS UTi, Worldwide (Aerospace and Defense Group) Vietnam Graffiti Project Women In Trucking Association, Inc. Worldwide Aeros Corp

sponsors AAT Carriers, Inc. ABF Freight System, Inc. Alaska Air Cargo/Alaska Airlines Allswell Supply Company APL Limited Avis Budget Group Baggett Transportation Best Western International Chalich Trucking Choice Hotels International DHL Echo Global Logistics FEDEX Final Mile Logistics 16 |

Defense Transportation Journal

FMN Logistics Hertz Corporation InterContinental Hotels Group (IHG) Landstar System, Inc. Lockheed Martin Maersk Line Limited National Air Cargo Omega World Travel The Pasha Group Port of Anchorage Port of Port Arthur R & R Trucking Red Prairie Corporation Rentacrate |

December 2012

Ridgeway International USA, Inc. SAIC Southwest Airlines Supreme Group USA, LLC Tennessee Steel Haulers, Inc. Teradata Corporation Totem Ocean Trailer Express Transportation Institute Truva International Transportation & Logistics Universal Truckload Services, Inc. UPS UTi Worldwide Vietnam Graffiti Project

keynote and featured speakers Keynote Speaker | Opening Ceremony

The Honorable Alan Estevez Assistant Secretary of Defense (Logistics & Materiel Readiness)

r. Estevez opened his presentation with recognition of the military, civilian workforce and industry partners, all of whom did stellar jobs in support of our efforts in Iraq and Afghanistan. All provided key support in front-end deployment, sustainment, and eventual redeployment and retrograde. These parties have also been crucial in standing up the Northern Distribution Network (NDN), addressing ongoing logistical challenges, and the handling of supplies with closeout of the NDN pipeline. He continued his opening remarks by reminding everyone that while we are moving into a new phase, our nation is still at war in Afghanistan, and all discussions need to be in perspective with this reality. Mr. Estevez recalled his presentation at last year’s NDTA Forum in Phoenix which he titled, “The Good, The Bad and The Ugly.” He offered some of the changes within the DOD since his Phoenix presentation, including: • Budget – developed strategy with consideration that there would be a downsizing of the war effort in Afghanistan and withdrawal from Iraq • Pivot with new focus on the Pacific, with associated budgetary impact • Smaller force presence – more lean, more agile

The impending threat of sequestration resulted from 2012 debt ceiling deal, which cut $1 trillion in government spending over the next ten years. Congress was tasked with finding another $1.2 trillion. However, Congress did not agree on the formula of lower spending and higher taxes to achieve the goal, resulting in a mechanism in the debt ceiling-raising legislation which causes automatic spending decreases to hit the $1.2 trillion figure; about $109 billion in lower spending each year for the next ten years. Mr. Estevez was clear in suggesting this model was not a very good plan or situation for the US, and specifically the US Military and Defense infrastructure. No action regarding sequestration was set to take place until after the elections. Sequestration will take effect unless a change occurs during the lame duck session. Mr. Estevez closed his comments on sequestration and the budget stating that “this is a very confusing situation, especially under the current continuing resolution over the next six months.” Mr. Estevez then provided an update to what was being worked on by the Acquisitions, Technology & Logistics (AT&L) Offices. In order, the priority focus areas are: • Supporting forces • Improving affordability of acquisitions • Workforce • Industrial base In terms of supporting the forces, while Mr. Estevez praised the “spectacular logistics activity” being performed, several challenges to the drawdown in Iraq still exist. These include: • Inventory management • Identification of materiel to unit level • Retrograde – determining what should remain, what should move • Forward logistics to Afghanistan, other theatres

We have a lot of equipment that we need to get rid of and we need to make hard decisions as to what to do with all of it. The donation of equipment in Afghanistan is difficult, and due to their financial situation, materiel acquisition is especially challenging. These commodities include: MRAPS, Hummers, SUV’s, laptops, generators, and monitors, to name a few. Fuel acquisition continues to be one of the biggest concerns, now and into the future. An initiative being taken to improve the efficiency and affordability of our acquisitions is the Better Buying Power program. This involves taking a closer look at acquisitions and what we are buying. When new gear is purchased, whether or not we can afford to purchase it will be examined, in addition to looking at whether or not the equipment will be affordable throughout the entire lifecycle. All purchases are being scrutinized by AQ because they cannot afford to buy anything that is not going to last. Mr. Estevez continued by discussing occupations of service, which include transportation, repair, and base maintenance. Each Service has an acquisition specialist. Current procurement scrutiny measures are under review and stronger performance metrics are needed. To meet these needs a peer review of best practices and value is being performed. They are also looking at small business goals and objectives, with the foremost objective being innovation. Finally, Mr. Estevez addressed AT&L’s focus on the industrial base. The main point in question being what the industrial base will look like in the future, with troops drawing down, less materiel movement, and focus shifting towards the Pacific. In response to these shifts, AT& L is looking intently at the future of Airlift and Sealift. A question and answer period followed Mr. Estevez’s speech. The first question

www.ndtahq.com | 17

was whether or not the military services would be bringing more repair and maintenance processes in-house? To this, Mr. Estevez responded that no plans to do so existed. One objective in the FAR-Based contract environment is better 2nd, 3rd tier controls on sub-contractors and related compliance. The next question asked was how the drawdown would impact our overall defense? Mr. Estevez responded that under 100,000 contractors remained in theatre. Many would drawdown with troop withdrawal, others may actually take on a more active role and responsibility. featured Speaker | Opening Ceremony

MG Roger Mathews, USA Deputy Commander US Army Pacific (USARPAC)

ollowing the Forum Keynote, NDTA got an introduction to the area highlighted in the Defense Strategic Guidance courtesy of MG Roger Mathews. The General began with a short video introduction asking “who and what is USARPAC?” Bottom line: 115,000 soldiers have deployed for continuing missions since 2001. The Nation’s eye is on Asia-Pacific and USARPAC stands ready. This being his first Forum, MG Mathews quickly found himself among friends from around the Services, and on behalf of USARPAC Commanding General LTG Frank Wiercinski, he thanked attendees, who “represent the organizations and the capabilities essential for what we do in the Pacific.” USARPAC covers half the world’s surface. While people traditionally think of the Pacific as a Naval Theater, nobody lives on the water; seven of the world’s ten largest armies are found in the region, so land power is credible and relevant across the AOR. MG Mathews continued that “our goal across the region is to promote security and stability.” Fiscal Year 2011 included more than 130 engagements in 34 countries of enhanced relationships and partnership building. This year, USARPAC is on 18 |

Defense Transportation Journal

track for 144 such engagements. “Unique to the PACIFIC AOR, the USARPAC Commander is also responsible for homeland defense in the AOR.” Today, almost 10,000 USARPAC soldiers are deployed in support of overseas contingency and combat operations outside the AOR, such as in Afghanistan. “Thankfully, nowhere is it more evident than the Asia Pacific Region that our Nation’s military, civilian sustainment, transportation and logistical capabilities are present and hard at work,” he said. “Using these assets is how USARPAC sets the theater of operations to conduct large scale land operations, and it is truly impressive.” General Mathews noted that partner nations are always interested in how USARPAC is able to produce a wide range of logistics support while spending resources are coming down in our homeland and theirs. The answer, he said, lies in USARPAC’s structure, processes, and the depth of capabilities the US Army brings to the region. Every three days, this region has a natural disaster or event that costs human lives or life-changing property damage. A significant amount of USARPAC exercises and exchanges are tailored toward humanitarian assistance and disaster relief, making them Mathews said, a focal point of USARPAC’s partnership program. That same day as logistics and transportation professionals from around the world listened to MG Mathews in Anchorage, his soldiers were in Bangladesh participating in a disaster preparedness exercise, learning how to work with partners in the aftermath of an earthquake. While Defense spending cuts loomed, MG Mathews noted the importance of using capabilities efficiently and wisely, for “We will really never have enough if we don’t use it wisely,” he noted in regards to strategic theater lift. “As the world has become more interconnected, we have learned some valuable lessons,” he said. “We have learned that we are all logisticians by necessity.” MG Mathews called logistics the “long pole in the tent,” saying sustainment plans cannot be integrated after operations plans are developed. Learned sustainment imperatives include: • Plans must be adaptable and flexible enough to respond to unforeseen and foreseen crises. • Continue to adapt a network planning

December 2012

approach, ensuring efforts at service component level mesh with combatant command level planning efforts and global distribution campaign plans. • Geographic posture—forward presence of equipment—and in some cases relief supplies—must be in place and ready to react when unforeseen needs occur. • Organize sustainment forces in right quantity and component mix to meet missions across entire spectrum of challenges when conflict arises. All of this, MG Mathews says must be done in a strategic environment where the Army is getting smaller while demands across the spectrum are increasing. With that, MG Mathews proceeded into the question and answer period. The first question was about potential basing opportunities in Australia. MG Mathews said USARPAC is looking at pre-positioning equipment and rotating forces that would work in a connected distributed manner, but not looking at basing forces in Australia. He noted that our partner nations are buying our equipment so their equipment speaks the same language as ours. Another attendee asked about the changing number of forces locating to Guam. MG Mathews said plans are in the neighborhood of 5,000 Marines moving to Guam and possibly Hawaii. Since Guam is a huge transportation hub, he is also interested in potential protection requirements such as missile defense. featured Speaker military unit awards Ceremony

RADM Mark Buzby, USN Commander Military Sealift Command (MSC)

ear Admiral Mark Buzby presided over the Military Unit Awards Ceremony which honored 10 outstanding units from the Army, National Guard, Marine Corps, Navy, Air Force and Coast Guard, both active and reserve. RADM Buzby informed audience members that NDTA has been honoring out-

standing units of all services since 1966, with each unit being selected for the honor by its respective service. Sighting their accomplishments and those of all logisticians around the globe, Admiral Buzby stated that we are “ready, able and successful” in such varied crisis from Iraq and Afghanistan to relief for hurricanes, the earthquake and tsunami in Japan, and Utuk, Alaska. He continued that these 10 units are just the “tip of the iceberg”, in representing all the logisticians in all services who make sure that our military, civilians, and those in need receive what they need when they need it. You can’t see the rest of the iceberg, imagine all those you can’t see doing their jobs. We honor all of them by focusing on the best of the best. The people and units we honor have uniquely different methods but their common focus is supporting the warfighter any way they can. featured Speaker

Maj Gen Peter Talleri, USMC Commander Marine Corps Bases Pacific

aj Gen Peter Talleri presented Forum attendees with a terrific update on USMC activities in the Pacific. He began by noting the strategic shift in DOD focus back to the Pacific arena where the Marines have had a presence since World War II. Since that time, they have worked on building relationships with local nationals, by providing aid in areas such as construction, medical care, and dental care. These programs instill friendship and commitment between the locals and US Armed Forces.

Currently, the Marines are drawing down troops from 202,000 to 180,000. Despite fewer troops, they are still task oriented, scalable and adaptable. Through over 65 exercises per year, including exercises with allies such as Thailand, Australia and Japan to name a few, the Marines are a powerful, capable, well prepared force able to respond to a crisis fast. Since 2004 the Marines in the Pacific have responded to 13 disasters, the most recent being the Japanese earthquake, tsunami, and nuclear crisis. Due to preparations for an exercise with a tsunami scenario, the Marines were able to immediately deploy, delivering thousands of pounds of relief supplies by sea and by land. When their help was no longer needed, they redeployed just as rapidly. Maj Gen Talleri continued that the Marines are constantly preparing for new frontiers by taking advantage of each new opportunity as it presents itself. He discussed plans for establishing a rotational force in Darwin, Australia, starting with 200 people on six month rotations increasing to 2500 people by 2014. Though there will be challenges associated with strategic and intra-theater transportation support of this location, Maj Gen Talleri suggested that High Speed vessels might be an attractive option for the latter. He also mentioned the importance of leveraging industry partnerships to obtain requisite levels of transportation and IT support for intransit visibility. MG Talleri continued his presentation by stating that the situation regarding Guam had changed. The original plan was to station 8000 there, but the local infrastructure simply could not support that number of people. The Marines are presently rotating forces in from CONUS on six month deployments, and are considering a final number closer to 5,000. He went on to express some concerns about the West Coast ports’ ability to support deployments into both Darwin and Guam.

featured Speaker

VADM Mark Harnitchek, USN Director Defense Logistics Agency (DLA)

ADM Mark Hanitchek began his presentation by thanking the men and women in uniform, in industry, and civilians for their responsiveness to the DOD over the past ten years, referencing a fireside chat by President Roosevelt, he called them the “arsenal of democracy.” The Admiral then moved into discussing DLA’s current status, stating that it had one of its biggest years with $40 billion dollars sold through August and that the agency had doubled in size since 9/11. DLA sales include fuel (half of sales), food, pharmaceuticals, construction equipment, uniforms, etc. Like most big logistics agencies, DLA is a working capital fund, using revolving fund money to make lead time investments in things. Customers then requisition the materiel, pay for it, which DLA uses to pay suppliers. Approximately 14% is added to the cost which is used as DLA’s operation budget. With reference to the PACGLOC closure, VADM Harnitchek stated that during the closure there was more food and supplies on the ground than ever before. The Admiral called DLA a “big logistics animal,” adding that there is almost no challenge it cannot meet. Switching gears, the Admiral stated that there would be a new subsistence prime vendor in Afghanistan this year, which would be a challenge he was looking forward to meeting. The next challenge for DLA would be retrograde—how to get everything out of the AOR, ship it, dispose of

www.ndtahq.com | 19

it, give it away, etc. Again, the Admiral had no doubts as to DLA’s abilities to complete this task. DLA also remains ready to respond to any contingency that may pop up. DLA has evolved since it was first stood up in 1964, with missions being added to their AOR from the Services, and as a result of base realignment and closures. One example of this is DLA’s retail support (supply, storage and distribution) at service industrial sites, which had traditionally been part of the Services’ missions. Their missions have truly become end-to-end. One major challenge that has come up over more recent years is the need to combat the entrance of counterfeit parts into DLA’s supply chain. Regarding the new defense strategy, DLA has learned how to work long haul stability operations. Being a smaller force means knowing how to engage, disengage, regenerate forces and send them to the next contingency. DLA is also focusing on finding low cost, smaller footprint machinery to help achieve our National security objectives, such as unmanned aircraft. The strategy is partnered with new budget constraints across the department. What this ultimately means for DLA is getting the same effect for the warfighter at the same or a reduced cost. Looking at the supply chains into Afghanistan, VADM Harnitchek stated that they were not “just a little commercial,” but that rather, they were entirely commercial. Other than air support provided by the Air Mobility Command, all of the movement on the ground was completely provided by commercial partners, which he concluded would most likely be the way of the future. Describing its response to budget cuts, the Admiral described DLA’s plan to make greater cuts than what had been asked of it. DLA planned to reduce its budget by 10% over the next five years. This money would be given back to the Services. The Admiral’s goal is to have better performance at a reduced cost. To do this the Admiral has asked his team to really determine the necessity of each item purchased, in addition to disposing of excess inventory to reduce storage costs and infrastructure footprint. Industry stores food, pharmaceuticals, and fuel for DLA, and the Admiral felt there was room to expand this. Reverse auctions for business is another way to increase competition and ultimately save money. He further suggested that DLA needed to take a harder look at its fuel storage and 20 |

Defense Transportation Journal

usage. DLA is also working to become “audit ready” and to exemplify excellence in inventory management. DLA is looking forward and has already begun to work on meeting the future requirements of the department. They are forging strong partnerships with USTRANSCOM and industry, and have found ways to meet ever changing needs from war to humanitarian efforts around the world. In closing, the Admiral stated that it was a great time to be in the DOD because we are doing greater things than ever before. featured Speaker

CDR James Kriner, USN CCJ3-S Strategic Deployments US Central Command (USCENTCOM)

ommander James Kriner provided a detailed overview for Forum attendees of what CCJ3-S actually does. This includes the planning, synchronization and prioritization of the deployment of all forces into and out of USCENTCOM AOR. He covered the Retrograde Process 101 which is being used to identify, clean, inspect, process for transport, decide the proper mode based on priority and allocation, and move the cargo. CDR Kriner defined retrograde as unit equipment that is no longer on the property books. CDR Kriner then compared OEF lines of communication from 2008 to today. Through this comparison lessons learned can be identified to increase effectiveness going forward. The Commander presented the numerous new Lines of Communication in the AOR that are “redundant, flexible, with no single point of failure.” Getting retrograde equipment back to the US is a monumental task. Retrograde seaports include Charleston, Jacksonville, Wilmington, Beaumont, and San Diego, and retrograde airports are located in Dover and Charleston. The final destinations for the materiel are in GA, CA, PA, OR, TX, SC, WI, MS, and NC. Monthly Retrograde goals for Rolling Stock (RS) are 1,200 pieces per month and 1,000 pieces per month for Non-Rolling Stock (NRS). The pro-

December 2012

cess is being guided along by a network of multi-national partners, these include: • Dubai Multimodal – 200 Pieces RS/200 Pieces NRS • Jordan Multimodal – 50 Pieces RS/50 Pieces NRS • Russian Route – 200 Pieces RS/200 Pieces NRS • Kazakhstan, Kyrgyzstan, Tajikistan (KKT) Route – 100 Pieces NRS • Pakistan GLOC – Remaining eligible RS and NRS USCENTCOM and USFOR-A continue to plan and determine the force structure in Afghanistan post 2013. CDR Kriner explained that they intend to maintain maximum flexibility by maintaining the multiple Lines of Communication. The Command is being faced with new frontiers as it moves materiel back to the CONUS and new opportunities as it looks towards the Pacific. When asked what percentage of retrograde would be returned by air, CDR Kriner responded that direct air will not be used for retrograde unless it contains a high priority. USCENTCOM will look at policy and best practices to make such determinations. featured Speaker

Lt. Gen Brooks Bash, USAF Director for Logistics, J-4 The Joint Staff

t Gen Bash began by telling the audience about his upbringing as a child living in a remote, rural environment, where he was no stranger to the use of firewood as a dependable fuel source. In recent years, he learned how significant the economics and logistics of firewood supply is as a critical fuel in Afghanistan. This particular challenge of ensuring firewood fuel supply throughout the country of Afghanistan continues to be a key topic of discussion within the DOD. General Bash continued that, in his opinion, transportation and logistics mobility is the primary element for our military success. Key to this is examining the strategic direction and foundation of how we do our business.

General Bash identified “business that we have to get right,“ including the shift from Afghanistan to daunting challenges in the pacific, as well as the logistics prospective for that shift. General Bash explained that the Joint Staff must consider access importance, airlift and sealift ability, petroleum, and partnership capacity. General Bash then addressed readiness and the Joint Logistics Enterprise. Readiness included finding out what we have, determining if it is needed (SORTS), Guard/Reserve readiness, the JLRDB – Joint Logistics Readiness Dash Board, and critical capabilities with Command plans and risk assessments. With regard to the Joint Logistics Enterprise, General Bash said failure was not an option and that hot spots must be identified in case it became necessary to act on short notice. The Joint Force is regionally oriented, selectively Independent, and must be capable of rapid redeployment. “There’s a basic assumption globally that we will be ready, but that is not always the case, especially in light of joint logistics coordination.” General Bash next discussed operational energy and the challenge presented by keeping up with the fuel supply in Afghanistan. He estimated that the Joint Force’s gallons of fuel used per day is approximately $23 per solider. Access (physical, cyber, relationship visibility) and communication were important aspects of combating this challenge. The Joint Force understands the necessity of partnerships in what they do. They dependend upon commercial partners. They must consider responsiveness, the capacity of commercial partners, and monitor these areas. It is important to understand the dependence they have. Moving forward the Joint Staff is looking at the transition from high tempo and uncertainty of where the next crisis will be. There is great reliance on joint logistic preparedness and necessity of being ready when needed. When asked how we are we

doing with capabilities and capacity, General Bash responded that we are looking at it strategically, how we fight across the world. Logistics tension was noticed and the need to share resources, appropriation among Services was identified. In reference to Inland petroleum capability and readiness, General Bash said that joint capability is making good progress. featured Speaker

Gen William Fraser, USAF Commander US Transportation Command (USTRANSCOM)

eneral William Fraser opened his comments by discussing the value of the NDTA Forum and the opportunity it provides for members of the military, civilian, and industry partnership to meet. The ability of this partnership to learn and adapt has granted the department many successes in theatres that it never anticipated serving. As the world continues to present challenges such as humanitarian relief or other crises around the world, the General was confident that together we would deliver. General Fraser continued that USTRANSCOM’s missions are vast because of the global nature of the command and he reiterated that USTRANSCOM could not meet these challenges without its commercial partners. He also stated how proud he was to represent the hardworking men and women USTRANSCOM. At the end of last year, when it became obvious that they would need to accelerate the withdrawl of troops from Iraq, this team was able to meet the demands of our military, accomplishing the mission safely,

effectively and on-time. Another example occurred in July when Pakistan re-opened the PAKGLOC. USTRANSCOM did not receive advance warning of this occurring and immediately upon the news breaking, the General began to receive calls from industry asking how they could help. General Fraser stated that we are now at a strategic turning point, as the wars recede, we are still facing a range of security challenges which threaten our national security, as exemplified by recent attacks on US Embassies in Libya, Egypt, Yemen, and other hot spots around the globe. Further threats are found in recent aggressive military modernization efforts across Asia and growing threats of cyber-intrusion. We must plan for these attacks while maintaining full support to troops on the ground in Afghanistan. USTRANCOM remains on the leading edge of protecting its networks, due to its status as one of the most attacked organizations. In 2011, it had over 45,000 attacks to its network. As the strategic shift to the Pacific occurs, USTRANSCOM is finding its re-balancing in the most efficient and effective manner possible. This entails working with partners in the Asia-Pacific and also continuing efforts with industry partners. While there were certainly new frontiers being forged, Gen Fraser also made mention of potential opportunities in the Pacific. As a part of its re-balance and at the direction of the department, USTRANSCOM is looking to develop a global campaign plan for distribution, which will examine USTRANCOM’s ability to support theatre campaign plans in all geographic combatant commands, with attention to the resources needed and risks associated. This will ensure the enterprise remains vibrant across the globe. The plan will be collaborative and must incorporate industry. The goal is to have this plan completed in 2013. General Fraser next spoke about USTRANCOM’s requirement to reduce the deficit budget, stating that USTANSCOM would have to be “smaller, leaner

www.ndtahq.com | 21

and at the same time we have to remain ready, agile, quickly deployable and flexible because we don’t know where the next call is going to come from.” General Fraser acknowleged that there existed some unknowns with regard to what budget cuts would mean for the department and to industry, but he felt that with industry support USTRANSCOM would be well equipped to posture itself for the future. Positioning the command for the future has required leaders at USTRANSCOM to be thoughtful and deliberate in their actions. To this end, USTRANSCOM has embarked upon the process of creating a new comprehensive and collaborative five year plan. The plan looks at what USTRANSCOM does, how it does it, and a strategy to make the processes, structure, and culture of USTRANSCOM more effective. The goals of the command’s strategy are to: • Preserve readiness capability, within fiscal restraints • Achieve IT management excellence • Align resources and processes for success • Deliver customer focused professionals to satisfy customer requirements.

With help from all in the partnership and with the implementation of this new strategy, USTRANSCOM will continue to provide crucial operations when the calls come in. featured Speaker

Gen Raymond Johns, Jr., USAF Commander Air Mobility Command (AMC)

eneral Raymond Johns opened by stating that “it is all about relationships.” He explained that over the years AMC and the military have gone through contingencies that while different, are similar to what we face today on many levels. While many feel apprehensive about how to handle today’s challeng-

es, Gen Johns recommended responding by “releasing your people”—for him this means his airmen, for others this means soldiers or employees. Provide inspiration to these people to move forward and trust them. They will make mistakes, but we need to help them keep moving forward. He further stated that we answer the call of others so they may prevail. Throughout his speech Gen Johns provided examples of past successes by looking at the initial challenges and how people responded leading to the ultimate achievement. He explained that in some cases leadership makes it difficult on their own people, but that leaders need to look at what they are reinforcing. Instead of questioning their people, leaders should support them. Some of what we all do is for the greater good and sometimes, it is for one person. Gen Johns continued that there are no “redos” in this business, good is not good enough. One person can make a difference, we need to challenge the system, innovate, if leaders just trust their people and release them, those individuals can make a difference.

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 easy to save with reusable savings and discounts like these.

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). 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 6/30/13.

CoUpon # UUGZ055

Budget features Ford and Lincoln Mercury vehicles.

22 |

Defense Transportation Journal

December 2012

17669

professional session summaries An Interagency Transportation Perspective Including DOD Overseas Operations Moderator: Don Stanton, Deputy Assistant Secretary of Defense for Transportation Policy

Panelists: BG Lewis Roach, USA (Ret.), Deputy Dir., Policy & Planning, US Customs & Border Protection, DHS Joel Szabat, Interim Exec. Dir., MARAD, Deputy Assistant Secretary for Transportation Policy, DOT COL Mike Cashner, USA, Assistant for Deployment & Distribution, Transportation Policy, OSD

r. Stanton began by updating attendees on what his office had been working on, including work with the National Transportation Safety Board (NTSB) and DOT. Mr. Stanton explained that his office had been focusing on bringing together interagency support for the warfighter. He continued that the new strategic guidance had placed emphasis on the Pacific, Asia, and the Middle East. The key to this is to get the right mix of logistics assets and capabilities in place, but to do so within current fiscal realities in order to provide best efficiencies and value for agencies, and ultimately the taxpayer. Mr. Stanton next asked the audience if they had heard the term “whole of government,” which he explained meant integrated government participation. In other words, “whole of government” means trying to find ways to increase cost savings, collaboration, and to avoid duplicating efforts. He also acknowledged that working in interagency environments is not easy due to differences between agencies’ terminology, processes, etc. COL Cashner reinforced the importance of inter-organizational coordination, noting that Joint Publication One now requires it as doctrine. He also mentioned three lessons learned from the reopening of the Pakistan GLOC: where you stand de-

pends on where you sit, my bureaucracy is bigger than your bureaucracy, and industry is almost always faster than government. BG Roach mentioned that IT and information exchange are essential to meeting present and future threats. Mr. Szabat discussed the Maritime Security, Ready Reserve Fleet, and VISA programs within the context of interagency cooperation. He stated that the more government agencies involved in a process, the harder issue resolution becomes. A question from the audience regarding efforts to streamline inter-agency FAR contracting sparked some discussion. The answer provided was that this process still needs work. Funding is a big impediment to interagency cooperation, as is the lack of understanding about where the “other guy” is coming from in these relationships. In fact, DHS really has no external logistics focus yet. The overall takeaway from this session to attendees was that internal and external collaboration is essential if the DOD is to achieve efficiency and best value in transportation. The Service Contract Act – Implications for Government Contractors Moderator: William Brooks, Sr. Policy Advisor, Branch of Gov’t Contracts Enforcement, Wage & Hour Division, DOL

STRANSCOM is transitioning from tenders to FAR based contracts. Clauses in FAR based contracts require adherence to the SCA. Contractors who do not comply with SCA risk severe penalties—large fines and/or debarment from government contracts. Representatives from the US Department of Labor’s Wage and Hour Division will provide compliance assistance training regarding the SCA prevailing wage and fringe benefit requirements that are being

applied to USTRANSCOM’s FAR based transportation contracts. The Service Contract Act requires hourly wages plus benefits to be incorporated into all government service contracts. These wages and benefits become a part of the Wage Determination (WD). In addition, contractors are responsible for their own record keeping, as well as that of their subcontractors. A contractor can be penalized for sub contractor’s noncompliance with the SCA rules. Many contractors have drivers who are paid by the mile. The issue was raised how to convert miles to hourly wage and benefits. Is there a formula? No direct answer was given. Bona Fide Collective Bargaining Agreements with subcontractors can supersede the SCA. They become a part of the WD. They must be in place before the contractor bids on a government contract. This could be a solution for contractors who have a lot of independent owner operators or a lot of subcontractors. If the subcontractor has employees the subcontractor would have to have the same CBA with his employees. CBA must be made in good faith or it can be appealed. Supply Chain Efficiencies – Reducing DoD’s Costs Through Process Change & Strengthened Partnership with Industry Moderator: COL Craig Jorgenson, USA, Chief, Joint Logistics Operations Center, DLA

Panelists: Brig Gen John Michel, USAF, Chief, Change & Learning Strategist, USTRANSCOM Mario Pejrone, CEO, Argol America Inc, Argol Villanova Group Chris Larson, Director of Solutions, UPS

www.ndtahq.com | 23

Q&A |

From the Service Contract Act Session

How do independent contractors work? All employees including independent contractors will be considered SCA employees unless they are exempt under the Fair Labor Standards Act. There are limited exemptions for owner operators.

Do carriers with owner operators who submit IRS 1099, still have to comply with the SCA? You must pay wages & fringe benefits, in many respects the owner-operators are treated just like employees.

Criteria for owner operators/if you feel you are exempt? The burden is on the employer, most owner operators fall under the SCA.

What if you have a collective Bargaining Agreement? It should be submitted to USTRANSCOM, CBA would become part of WD.

Is there a conformance process? There is a process you can find on the website, bring the class you need.

Does the family medical leave act come into play? Yes, it would have to.

If a driver is paid per mile how do you translate that to an hourly wage? It should correlate to what would have been paid hourly.

Will the prime contractor be required to keep records from subcontractors? Some subcontractors won’t release this info. The prime has the burden of showing that the subcontractors followed SCA rules.

Do you have a formula for per mile versus hourly wage? It depends on the inspector, the burden is on the employer. Is there a distinction between full time, part time or temporary employees? If an employee only works one hour, fringe benefits applies to that one hour. Is there an exception where SCA doesn’t apply if an employee spends very little time on contract, for example with some subcontractors? If an employee works two hours on contract SCA would be considered applicable. If hours are divided, it must be documented, and then you can have only those hours worked on contract fall under the SCA. Professional service employees are exempt from SCA.

he overriding focus of this panel discussion was the mission of cost reduction within all segments of the DOD, and how to best maintain readiness for our troops with declining dollars. In addition, contending with the challenge of continuing to foster strong industry alliances while managing shrinking dollars throughout the government sector.

24 |

Defense Transportation Journal

If the subcontractor doesn’t supply records to the prime is the prime subject to fine? Yes, but not for record keeping violations. The burden is on prime, they are responsible for paying subcontract employees back wages. This will be determined by employees’ word, so prime contractors must make sure to get subcontractors who are in compliance and will provide records.

In essence we have to change our payroll if we don’t currently pay hourly? Pretty much, but do it as you feel necessary, just remember investigators will conduct employee interviews. Anyone performing on a contract are subject to inspection. All subs will be inspected. If a subcontractor doesn’t receive a flow down of clauses, then the prime would be subjected to penalty. A subcontractor can’t comply with what it doesn’t know about. If employer is mathematically consistent w/WD and fringe benefits, but has a conflict/problem with an inspector what rights do we have? You have a right for a second-level review with his or her immediate supervisor and on up the chain. All WD’s are renewed yearly but surveys come out at different times per year. How do we keep track of changes in WD? Go to wdol.gov, which contains a section in which WDs are revised each week. WD will also change on anniversary date. If wages go up it is considered a new contract. What about Bona Fide Collective Bargain Agreements? Forward it to USTRANSCOM that would be part of WD, so the contract could use CBA instead of SCA rules. Appeals may occur if the CBA is not negotiated in good faith, or if it differs greatly from SCA rules.

How do you separate employees of subcontractors? If there are 5000 employees but only 20 work on an SCA contract, how do you separate this out? Record keeping.

What if CBA is well less than SCA? If done in good faith it’s okay. If it’s less it’s less. It can be appealed. CBA would be incorporated into the contract.

If we deal with 26,000 carriers, will the Department of Labor require us to keep track of 26,000 hourly wages etc.? Yes, keep records.

Who do we forward CBA to at USTRANSCOM? CBA MUST be in effect prior to contract or it doesn’t count. During an appeal the CBA is in effect until proven otherwise by legal.

COL Jorgenson offered the opening presentation from DLA’s perspective. The new defense strategy calls for a leaner force, as well as an increase in counter measures against violent extremism, increased intelligence, and increased technology. Strategy for achieving “10-in-5” (10% reduction in cost over 5 years) is to be smart buyers, improve process productivity, “clean out our attic,” delight our

December 2012

customers, and prove it. DLA is also considering reverse auctions and long term contracts as cost saving measures. The purpose of DLA’s strategic network operations is to optimize global distribution, reduce costs, and implement these changes. The intent is to leverage existing resources and maintain readiness, as well as to foster a culture of judiciousness, while supporting the warf-

ighter, and remaining connected to DPO and industry. Mr. Larson provided an overview of UPS and the capabilities that industry can supply to the DOD in order to accomplish it’s mission, including areas such as air, ground, freight, warehousing, distribution, NVOCC, and small package express. Challenges faced by military and industry alike include the coordination of solutions, getting timely information, creating an innovative environment, and meeting customer needs, especially the needs of those in harm’s way. Mr. Pejrone provided a brief overview of his company, which included work in energy and power, industrial, air cargo, automotive and transportation, as well as aerospace and defense. He presented case studies concerning government management of spare parts, inventory control, and IT support which demonstrated overall cost reduction along with improved efficiencies. BG John Michel spoke about enterprise efficiencies and improvement, with three key focus areas: process improvement, air optimization, and surface optimization. USTRANSCOM’s strategic planning effort includes more focus on both internal and external elements, and expectations. The planning will explore how money is being allocated against current need, and whether current staffing will meet current and future demands. The enterprise readiness center faces a decline in funding, despite requirement to maintain sustainment and readiness status. Strategically, this can be accomplished by cultivating better partnerships, ensuring organic viability, preserving access to commercial lift within financial constraints, and developing a clear, concise, and relevant command transportation strategy. Into the future we will adapt by preserving readiness, achieving management excellence, aligning resources for success, and developing customer-focused individuals.

What’s New in Personal Property – BCA Results & Potential Changes in HHGS Management

New Frontiers - New Opportunities for Cost Efficiencies Using Rail, on Large or Small Volume Shipments

Moderator:

Mike Williams, SES, Deputy to the Commander, SDDC

John Pinard, Mgr. Sales, Industrial Products, BNSF

Panelists:

Lisa Roberts, Deputy Deputy Assistant Secretary of Defense for Transportation Policy Michael Gonzales, Vice President, Denali Group Tim Helenthal, Vice President, Agency Development, Military, National Van Lines John Johnson, Chief, Quality Assurance Div., SDDC

Ross Burnett, Director of Sales, CSX Transportation Aaron Evans, Sr. Business Manager-Government, Union Pacific Railroad James Holloway, Jr., Director of Marketing and Equipment, Paducah and Louisville Railway Gisele Landers-Smith, Account Manager, Norfolk Southern Corporation Sharon Reeves, Sr. Account Executive – Carload Business Unit, Kansas City Southern Railway

his panel addressed the coming changes and challenges to personal property shipments. Mr. Williams briefly introduced the panelists before asking Ms. Roberts to begin the presentations. Ms. Roberts spoke about what the Department has been working on surrounding DOD personal property shipments. DOD HHG is a $2.2 billion program. Currently, the 151 personal property offices are in the process of being relocated to 17 regional hubs by 2016. Some benefits to this consolidation are standardization and the streamlining of operations. DOD is also moving towards utilizing electronic funds processing and transfers, which will allow payments to process within 72-hours. Changes are based on HHG Business Case Analysis completed in March 2012. Mr. Helenthal continued the presentations by discussing driver shortages and the challenge this presents to those in the HHG industry. It is hard to find drivers with the skills needed to move personal property. These skills include being good at paperwork, loading smartly, customer service, and being business savvy. Mr. Johnson said that moving forward the DOD is looking to get the changes into an easy-to-understand format. Fuel surcharges dominated much of the question and answer period, and it was clear that much more discussion was needed between carriers and the government on the subject.

r. Pinard began by showing a great video from the American Association of Railroads (AAR). He then went on to explain that the railroads had collectively invested $480 billion in their infrastructure since deregulation occurred in 1980. Furthermore, he noted that building one mile of track costs $5.2 million. Rail can be classified as both the old and the new frontier. It is a cost effective environmentally friendly, speedy way to get your cargo or unit from one place to another. Rail is intermodal serving all the major ports and military bases. It has point-to-point service which can be tracked 24/7 with updates hourly. It is fuel efficient, a ton of freight can go 469 miles on 1 gallon of fuel. Rail has better door-to-door service than any other form of transportation. There is no traffic gridlock or driver shortages with rail. Rail provides more than just transportation. Rail technicians provide technical experience, loading, chain tie down, unchain and off load service, all with only one bill of lading. Rail can make use of the many government owned special cars built for transporting heavy equipment like the M88 or M1. Rail is the most cost effective, timely and environmentally friendly mode of transportation.

www.ndtahq.com | 25

Mrs. Landers-Smith mentioned that coal constitutes 31% of that carrier’s revenue while intermodal, the fastest growing sector, makes up 19%. Mr. Evans also cited energy and intermodal as his firm’s largest commodities. Mr. Burnett’s view was that the industry is becoming increasingly customer and technology driven. Ms. Reeves added that fuel efficiency and environmental concerns were important to the industry as well. The session was very consistent with the Forum theme of New Frontiers-New Opportunities, especially with regard to preparing as an industry for the anticipated growth in traffic that will come as the economy and global trade continue to recover. Technological advances in braking systems will allow the operation of larger trains, while new track and improved infrastructure maintenance will pay longterm dividends. Finally, the railroads will continue to improve their ability to meet required delivery dates (RDD), which Mr. Pinard cited in his closing remarks as one of the industry’s greatest problems. Re-balance to the Pacific: Opportunities and Challenges Supporting the Nation’s Strategic Pivot Moderator: COL Stan Wolosz, USA, Deputy Chief of Staff for Logistics, USARPAC

Panelists: Col James D. (Doug) Golden, USAF, Vice Commander, 515th Air Mobility Operations Wing LtCol Lyle A. Ferrara, USMC (Ret.), Strategic Mobility Branch, G4, US Marine Corps Forces, Pacific BG Paul C. Hurley, Jr., USA, Commanding General, 19th Expeditionary Sustainment Command CSM Kevin A. McKeller, USA, Command Sergeant Major, 599th Transportation Brigade

he opportunities and challenges supporting the Nation’s Strategic Pivot are based on the Obama administration’s decision to expand and intensify its already significant role in the Asia-Pacific region. The challenge of this session was to look at all possible options across the logistics enterprise. This includes lessons learned from past operations like OIF, OND and OEF and also looking at the way ahead. Panelists presented material covering each of the services. The panel raised the question of how to cooperate across the enterprise. COL

26 |

Defense Transportation Journal

Wolosz ascertained that refocus may be a better description of what we do in strategic planning. Any challenges require critical choices with constrained resources. He continued that equipment prepositioning

tion, an audience member asked when actual changes in troop support will be seen, panelists responded that small part implementation would occur within six months, with full force of 2500 still to be

& multiuse of niche items will assist in humanitarian assistance and disaster relief. BG Hurley shared that the Korean theater of operations can be a dangerous threat with a ship sinking, artillery attacks and satellite launching all happening since March 2010. The North Korean economy is in terrible shape and the new leader must prove himself to the people. They have WMDs and the means to deliver them. According to Col Golden, the Air Mobility Ops Wing will focus on core competencies, multi modal options, facilities improvements and expansion, and maintenance reliability. Diego Garcia will be used for strategic positioning as there is no commercial air service. Lt. Col Ferrara told the audience that aligning interests means combining training, partner interests and PACOM priorities. He also aptly stated that “readiness results from training which increases in complexity, but decreases in frequency.” CSM McKeller stated that key tasks are to plan deployment, redeployment, sustainment, and humanitarian assistance/ disaster relief (HA/DR) support. Adding that, key support operations include: Balikatan (Philippines); PHIBLEX/Talon Vision (Philippines); Cobra Gold (Thailand); Key Resolve/UFG (S. Korea); Palau CAT (Palau); Project Partnership Kirbati); Northern Edge (Alaska); Talisman Saber (Australia); Pacific Reach (Japan) and Yudh Abhyas (India). Moving forward, COL Wolosz felt partner nation engagement will ensure success, build capacity, and delay aggression. He also felt we must look at the past and find the NDN’s of the future in the Pacific. During the question and answer por-

determined. Another audience member asked why we are using C-5’s, to which a panelist answered that we want them to be part of the plan, not sure yet of the right mix and the C-130 is also a force multiplier.

December 2012

Mentoring – A Joint Junior/Senior Mentor Dialogue Moderator: Charlie Hermosa, Vice President, Business Development, Triple B Forwarders

Panelists: MG Roger Mathews, USA, Deputy Commander, USARPAC RADM Mark Buzby, USN, Commander, MSC Will Martin, Manager, Military Markets, APL John Myhre, Director, Government Services, Crowley Maritime SSgt Jason Eubanks, USAF, 437 APS

pening day featured speakers MG Roger Mathews and RADM Mark Buzby who joined forces after lunch in the professional session “Mentoring – A Joint Junior/Senior Mentor Dialogue.” This session was a new approach to the A-35 Committee’s regular “In the AOR with our Young Leaders” Session, providing viewpoints from current leaders and rising junior leaders in a panel discussion on mentoring. MG Mathews and RADM Buzby were joined by junior leaders John Myhre and SSgt Jason Eubanks. In addition, Will Martin represented the opinion of someone who is mid-career. Panel Moderator Charlie Hermosa, introduced the panelists, who then engaged the audience in a lively dis-

cussion about mentorship at the early and latter stages of one’s career. MG Mathews led off by sharing that to him, good leadership is always required when mentoring. He was a high school dropout with a 1.6 GPA, but a mentor gave him guidance to last throughout his life. Now as he takes the senior mentor role, he encourages those about to step in those shoes to select a mentee who is not just like them. Often, MG Mathews has found it is the person in the office who is marginalized that steps up and becomes a leader when mentored. RADM Buzby finds mentoring is an opportunity to talk with someone outside your chain of command. RADM Buzby aptly summed up why mentoring is so important by saying “I was once told, ‘what you give away in life, you get to keep; what you keep, is lost forever.’” Having had great mentors in his life, he now enjoys telling them, “Something you taught me has led me to where I am today.” Often, MG Mathews has found it is the person in the office who is marginalized that steps up and becomes a leader when mentored. Will Martin shared that the value of networking—having the opportunity to meet senior leaders in arenas like the forum—has helped him in his career. He added that “we’ve got to keep young people stimulated and involved or they’ll go somewhere else.” The panel’s junior leaders talked about the need for mentorship to be a two-way street, and the need for both the mentor and mentee to have expectations from each other and clearly explain them, so that both may benefit from the experience. “You’ve got to give and show respect to get it back,” SSgt Eubanks said. “I’ve had so many mentors, it’s hard to pick one.”

Mr. Hermosa asked the panel about a technology gap between what senior leaders think and junior leaders know, sparking a lively debate over the merits of social media between the panel and audience members. “I acknowledge the benefit of Facebook,” said Admiral Buzby, whose civilian and military mariners have met with “vibrancy of communication” on the command’s Facebook page. “The technology tools are helping move the dialogue more quickly,” he said. The question for the group swiftly became, “Is mentoring possible through social media?” While audience members could cite examples where advice has been shared and answers found more rapidly online, most in the room seemed to agree that a one-on-one mentorship occurs over years and with personal attention. General Mathews pointed out that when a mentee has a spark, the mentor can see it and help them grow. Mr. Hermosa closed the session by encouraging participants to belong to a program like the NDTA A-35 Program. “It’s a matter of going out there and finding it; it won’t come to you,” he said. Above all, Mr. Hermosa stressed that beyond the Forum week, attendees need to continue to close the gap between the younger and older generation of leaders, so that young leaders will be prepared to fill the shoes of those who came before them. “We can’t lose the art of mentoring,” he said. NDTA Chapter Best Practices Moderator: Jeff Campbell, Manager, Chapter & Membership Support, NDTA

Panelists: Bob Sherrill, NDTA Pacific NW Region & North Pole Chapter President Joe Escalera, NDTA Regimental (Peninsula) Chapter President & Recruiter of the Year Ryan Garcia, San Antonio Chapter A-35er

or the first time, this year NDTA tried a Chapter Best Practices Session, aimed at members who are unable to make the weekend Member Workshop, and/or those who attended the Saturday workshop, but would like to go into more detail on an area affecting their chapter. This session featured an NDTA all-star panel, featuring North Pole Chapter President Bob Sherrill, who led efforts to grow the chapter from Category I (under 100 members) to Category II (101-250 members) over the past year; Joe Escalera, multiple individual recruiting drive winner; and Ryan Garcia, a new member who’s brought fresh ideas to the San Antonio Chapter, which has won chapter A-35 honors multiple times. Mr. Sherrill spoke on core ideas and the importance of community involvement. He recommended that chapters that do not have a military base nearby find related civilian companies that will help the chapter and show them the value NDTA provides. Mr. Sherrill also explained a strategy for having luncheon speakers. This includes matching up with tours, trying to keep a backlog (plan a year out), check who will be visiting the area, and think out of the box on what may be of interest. Mr. Garcia spoke on what it takes to make an A-35 program successful: get the A-35ers involved in everything the chapter does, open to change for nonA-35, listen to ideas from both industry and government. The best practice that worked for his chapter to get more people involved is having their scholarship committee reach out to high schools. Mr. Escalera spoke on recruitment ideas. He discussed industry challenges, lunch and learn, case studies for students, WIFM (what’s in it for me). Attendees took a some great tips home with them: when giving an application to a potential member, be sure your name’s in the “sponsor” line to get credit; disaster prep and community service events

www.ndtahq.com | 27

stand out when submitting for a chapter award in addition to regular meetings; and nominating your chapter or an individual member for an award is easier than ever, and one of the best ways to recognize your team. Chapter growth, A-35 programs and recruiting were the focus of this year’s chapter session; let us know what topics you’d like covered next year, or if the format should be changed. We’re here to help your chapters thrive! AA&E, Hazmat Safety, Security, & Base Access – Rail & Highway Rules & Regulations Moderator: Mr. Melvin Holland, Director, Strategic Business (G9), SDDC

Panelists: Marc Boyle, President & CEO, Boyle Transportation, and Chairman, NDTA Security and Safety Subcommittee Lloyd Coleman, Special Agent, Federal Motor Carriage Safety Administration (FMCSA), DOT CE Radford, SDDC Chief of Domestic Business

he panel discussion focused on DOD, DOT, and commercial regulations, procedures, and initiatives aimed at improving the safe and secure movement of Arms, Ammunition, and Explosives (AA&E), and other hazardous materials (HAZMAT), as well as protective security and sensitive cargo along US roads and railways. Panelists explained some of the transportation security and safety programs currently in place. New innovations in tracking shipments and electronic logging of drivers’ activities via computers linked

Secure holds were another topic the panelists covered, relaying the importance of having areas across the US deemed to be “safe havens” for sensitive cargo should an attack or natural disaster occur. to the odometer and hour meter on trucks and equipment are being utilized more frequently. However, the ability to modernize the fleet when the current focus is on saving the government money is a significant challenge. 28 |

Defense Transportation Journal

Installation access remains a hot topic for carriers and is one that the government continues to work through. Secure holds were another topic the panelists covered, relaying the importance of having areas across the US deemed to be “safe havens” for sensitive cargo should an attack or natural disaster occur. The panel commented on Hours of Service (HOS). Finally, the panel discussed Compliance, Safety, Accountability (CSA). International Opportunities – Africa, Asia, Latin America, Eastern Europe Moderator: Brian Roberts, Senior Director, Government Services, DAMCO

Panelists: Jim Solares, Manager Worldwide Sales, FedEx Gov’t Services/DoD Gregory Diven, Managing Director of Enterprise Accounts, Gov’t Defense Sector Ambassador Egidijus Meilunas, Vice Minister of Foreign Affairs, Lithuanian Embassy Stefanie Dobbert, Key Account Mgr., DB Schenker

he panel focused on the commercial realities in the Asia/Pacific region, Eastern Europe, Africa, and Latin America. Mr. Diven began by saying that the pivot to Asia is driven by the economic and strategic importance of the region. Firms simply must have a presence in Asia. With regard to Eastern Europe, Mr. Zimmer commented that the area is very fragmented logistics-wise. In addition to anchoring the northern-most part of the Northern Distribution Network, Lithuania is adopting a key role in thru-rail connections to China and the Middle East. Countries such as the Ukraine and Azerbaijan, however, suffer from a general lack of logistics resources and expertise. Mr. Solares then discussed Latin America, highlighting the unprecedented economic growth in the region over the past five years. The area is becoming more stable politically and contains two of the fastest growing economies in the world: Brazil and Mexico. However, logistics challenges still can be daunting, especially with respect to customs clearance/regulatory issues and infrastructure. The former tend to vary significantly from country to country, while urban traffic, security, and generally poor road networks, can prove especially disruptive to on-time customer deliveries. FedEx has embraced the use of partnerships with best-

December 2012

in-class local brokers and service providers to smooth the customs process, while forward stocking in locations such as Mexico City and Bogota help to maintain satisfied customers. Similar partnerships with local firms have helped deal with cargo security problems, which continue to be rampant in the region. Regarding Africa, Mr. Roberts said the region is driven by the demand for its raw materials, i.e. export. As a result, the infrastructure primarily connects mines with ports rather than supporting the movement of goods within a given country. Interestingly, 1/3 of the nations in Africa are landlocked. There are several large rail projects being planned, but these are also intended to facilitate raw material export. Similarly, a road train system is being used in place of rail to transport ore from an inland mine to the port in Western Africa. The reality in Africa is that most logistics tasks are still done largely by hand. Undoubtedly, the logistics capabilities in these regions will become more modernized in the future. However, for the short-to-medium term, firms will have to determine ways to work with these deficiencies much like FedEx has done in Latin America, if they hope to succeed in developing markets. An interesting analytical tool, the Logistics Performance Index (LPI), is published by the World Bank and is available on the NDTA website. The LPI rates each country on the quality of its logistics resources. For example, the LPI for African nations is mostly below average, with a few at the average level, and almost none above average. Leveraging Business Data & Intel for Logistics Efficiencies Moderator: Rob Armstrong, Director, Data Warehousing, Teradata Corporation

Panelists: Jeff Elder, Director, Marketing and Alliance Sales Development, Delta Air Lines Joe Cash, Engineer, FedEx Express

r. Armstrong opened the session by saying that we all look at reports, data, and information to try to gain insights. He continued by describing a client whose philosophy was: if you aren’t going to make a decision with

the data, don’t ask the question; if you aren’t going to take an action, don’t bother making a decision; and if you aren’t going to measure a result, don’t bother to take the action. What this means is not to waste time on unnecessary information. If you have data, but do not use it for anything, it is essentially worthless. What is essential is taking the insights gained and leveraging it into an actionable sense. Mr. Cash explained that data warehousing helped FedEx organize, analyze, and secure its data, including allowing it to provide real-time tracking of packages and historical trends. The move to this system forced FedEx to think more about outcomes, as opposed to individual processes. FedEx measures a huge amount of data which they leverage into performance metrics that will help the company and employees improve quality of service. Mr. Elder reiterated that data available is getting larger and larger. Managing data comes down to compatibility and properly assessing data before using it to make decisions. Delta must be not just manipulating data, but being able to pull from that what the individual customers want to optimize its forecasting. New Frontiers – New Opportunities – Air Ships Moderator: Gen. William Tuttle, USA (Ret.), Consultant

Panelists: LTG Robert T. Dail, USA (Ret.), President, Supreme Group, USA Col Edward Kaharik, III, Hybrid Air Ships Program, USTRANSCOM Mr. Ray Riutta, Executive Director, Alaska Seafood Marketing Institute

he Panel began by covering the current status of USTRANSCOM’s Hybrid Air Ships program and its relationships and technology investments

with Industry. Col Kaharik said that USTRANSCOM began investigating Hybrid Air Ships in 2010 and was studying 20 ton and 50 ton variants. (As a comparison, a C130 can handle 20 tons, while a C17 moves 45 tons.) He identified cost, maintenance, buoyancy, and ground-handling equipment as the biggest challenges, not to mention weather and survivability.

Future AQ (DTCI, DT-15, USC 07, Sea/Air, TPS, DTMO Contracts) Moderator: Gail Jorgenson, Dir., Acquisition, USTRANSCOM AQ

Panelists: Brig Gen John Michel, Deputy Director, USTRANSCOM Strategy, Policy, Programs & Logistics, J5/4 Tammy Thouvenot, Acting Deputy, Acquisition Business Operations, USTRANSCOM AQ Mike Williams, SES, Deputy to the Commander, SDDC Brig Gen Scott Goodwin, USAF, AMC/A3

LTG Dail then spoke about commercial applications in the third world, where such a machine could replace long-distance trucking over primitive road networks. He highlighted Mongolia as an example of a land-locked nation that is far from anywhere. Hybrid Air Ships could connect ports around Asia with Mongolia by air. Similarly, Mr. Riutta commented that the industry catches 5 billion pounds of seafood a year which is mainly transported by sea because many fishing communities are not on the road system. Hybrid Air Ships could make air transport to market a viable possibility. From a military standpoint, modern design technology allows these new airships to land and take-off vertically as opposed to horizontally (as in the past), which will allow them to access places with (for whatever reason) limited approach access. The ability to move goods faster than surface, but more inexpensively than air, is a very attractive notion. This presentation fit perfectly with the theme of the Forum; association members can keep up-to-date as development progresses through NDTA media outlets.

he clear theme of this session was that everyone must be prepared for budget cuts and to evaluate how to make this transition work. As we head toward the fiscal cliff, it will take a coordinated effort by everyone at USTRANSCOM AQ to find efficiencies in all aspects of the procurement efforts. This includes the need to learn more from Industry about broadened capabilities and continued multimodal efforts. It will not be easy to find better value at lower costs, but cost reductions must be taken into greater consideration in contracting. Ms. Jorgenson summed it up by saying that we must learn to do more without more. BG Goodwin told the audience that readiness and maintaining a viable fleet are primary responsibilities at all times. He added that CRAF is just as critical as the organic system, we need to know how to structure it for the future and how to find the right balance. Mr. Williams explained that except for rail cars – everything else we move is via commercial. In discussing the future, Mr. Williams said that everyone is asking questions about change—what do we have, where is it and why is it there? SDDC’s focus will be on both effectiveness and efficiency. According to BG Michel USTRANSCOM established an Enterprise Readiness Center to manage and better understand people, processes and culture.

www.ndtahq.com | 29

Ms. Thouvenot discussed the establishment of a Corporate Executive Acquisition Board, with quarterly reviews with reps from all modes; AQ Industry specialist established in TCAQ to better understand how Industry works; pre solicitation conferences and Industry days to better understand Industry capabilities. The Next Great Frontier: Cyberspace & Securing Your “Bits & Bytes” Moderator: Brig Gen. Gregory Touhill, USAF, Director, C4 Systems, USTRANSCOM TCJ6

Panelists: Jerry Cochran, Principal Cybersecurity Architect, Microsoft CAPT Daryl Hancock, USN, Director of Intelligence, USTRANSCOM Michael Evanoff, Geospacial Engineer, Google Dave Bosko, Liaison to USTRANSCOM, USCYBERCOM Peter Trahon, Section Chief, FBI

yber security is important to national security as we protect ourselves from adversaries who may desire to learn the movement of our American military and companies protect against corporate espionage. The panel’s focus was to identify the threat environment, to discuss ways to protect against these threats, and to identify assets or resources that are available to companies. From a military perspective, cyber security is an operational concern, it is sensi-

Cyber security is a partnership, we must all think defense in depth—it’s not just about the technology, it is about training your people, having a culture of security and awareness, as well as having procedures and policies in place. tive, but sharing information is necessary so risk management is necessary. From a risk standpoint information is “need to know”. Of industry, USTRANCOM expects companies to take reasonable measures, based on industry standards, to protect information. Industry must consider itself custodian of certain information which may play a role in protecting the lives of American military members. Mr. Evanoff 30 |

Defense Transportation Journal

discussed the difference between government/military versus commercial models of security. With the sharing of best practices, the two are evolving to have more similar security networks. Partnership and maintaining a constant dialogue are key to safeguarding information. As we identify emerging threats, we must look at who is a threat, determine what they are trying to do, and run any incidents through channels. The cyber world is a scary place, to help your company you should practice good “cyber hygiene.” This includes: making sure you patch your applications, that your operating systems are up-to-date, minimizing people with admin rights to your systems, and doing an application whitelist. If you feel you have possibly been victim of cyber theft there are a variety of commercial and government organizations who can help you. Cyber security is a partnership, we must all think defense in depth—it’s not just about the technology, it is about training your people, having a culture of security and awareness, as well as having procedures and policies in place. How to do Business with the Government (GSA, DLA, USTRANSCOM) Moderator: MG James Chambers, USA (Ret.), Executive Vice President, McLane Advanced Technologies

Panelists: COL Craig Jorgenson, USA, Joint Logistics Operations Center, DLA Scott Kidd, Chief, Freight Management Branch, GSA Nicholas Weiss, Director, Office of Small Business Programs, USTRANSCOM

he overall focus on the panel discussion was to provide an update on where each organization was positioned relative to requirements and compliance procedures for industry partnering. The impact of the current fiscal environment in doing business with these organizations was a key component verbalized by each speaker. The elements of compliance and meeting specific criteria to do business with the government was the main point of MG Chambers presentation. He emphasized the most common requirements for commercial business centered on areas such as audit preparedness, the ability to

December 2012

demonstrate necessary certifications upon request, training, fluency in the “language” of the government entities, and peer-to-peer relations crucial to fostering a strong partnering environment.

Col Jorgenson highlighted the current and projected veil of fiscal belt tightening throughout all government enterprises. He noted many areas in which the DLA has provided, and will continue to play an active role in supporting our troops, including foreign military sales, FEMA support, fuel, subsistence, construction material, documents, etc. The PTAP Program, based in Philadelphia, PA, offers commercial businesses support in areas such as Contracting, FAR assistance, PreAward, Post-Award support. There is a Reverse Auction for online bidding from suppliers based on the item cost from last purchase (similar to eBay bids). Scott Kidd brought the audience up-tospeed on the GSA schedules, including: schedule 48 for transportation services, 599 for Travel Services and 875 for Logistics consulting services. These schedules are open and posted in FEDBIZZOPS. GSA wants the highest discount available to its users and all schedule holders can be contacted for possible sales. GSA has 2300 TSP’S and over 800 active users. GSA is the only agency that can negotiate for other civilian agencies. The express carriers in DOMEX and WWX have used over $300M in express services. Mr. Weiss highlighted several components of the USTRANSCOM Small Business program: the Office of Small Business Programs is designed to foster Small Business participation; moving forward price will be the key selection component in contracting, with lesser emphasis on historical experience; factors are weighed differently depending on the nature of the contract; information is available through his office on www.FEDBIZOPS.com.

The Army Reserve Expeditionary Rail Center in Afghanistan Moderator: COL David Pollard, USA, Assistant Chief of Staff, Reserve Affairs, SDDC

Panelists: COL Larry McColpin, USA, US Army Combined Arms Support Command Chief of Reserve Affairs Erin Thede, Director, Employer Partnership Office, Office of Army Reserve MAJ Tim Christensen, USAR, Team Chief, Afghanistan Rail Assessment Team Margaret Downey, General Manager, Learning Development & Strategy, Railroad Education, CSX Transportation

he Army Reserve is using a five man team of RR specialists in Afghanistan to build its Railroad and train their people in all facets of running a freight RR. This aids the Afghan economy and insures that when the time comes to exit, the Army will have a safe cost effective form of transportation for their cargo. The Employer Partnership Office offers to send reservists and vets, on orders, to RR Companies to be trained. The companies get to train them the way they want, and benefit from free labor during the training period, in addition they rceive

first choice of the best of the trainees. In return, the vets/reservists get a valuable skill set. The Army gets trained railroaders, who can be deployed to any place in the world to help with RR infrastructure. Increasingly rail is going to be the freight transportation of the future, especially in emerging markets. Our Army Reservist Railroaders are on the cutting edge of this new frontier. For information on hiring a reservist contact HireNow@ employerpartnership.org. For Soldier inquiries contact GetHired@employerpartnership.org.

Professional Education Tour: UPS Anchorage Gateway

s a part of the Forum professional program, attendees had the option of signing up to tour the UPS Anchorage Gateway, located on the great circle route that is the shortest distance from North America to Asia. NDTA members tried flying a cargo plane in the same simulator UPS pilots train on annually, learned about the active RFID used in delivery trucks for efficiency, and experienced a close-up look at the cockpit and cargo of a plane just before it took off from Ted Stevens Anchorage International Airport. Two simulators are staffed 24-hours a day for pilot training in a converted hangar at the south end of the airport. The B747-400F Simulator costs approximately $18 million and $400 an hour to run. Tour participants tried out the state-of-the-art MD-11 simulator in UPS’ Anchorage Flight Training Facility, which also includes training classrooms, offices, and support facilities to provide the necessary long-range international lift for UPS to maintain its global reach. Following the realistic-feeling flights, members stepped into a classroom for a short presentation on efficiency upgrades in UPS deliveries. Packages used to be tracked

with just a bar code, which only provided the tracking number and wouldn’t read with part of the code lost. Now with QR codes, more information about the package is available and the code can still be read when up to 40% is missing. Vehicle sensors have also helped improve safety, showing seat belt usage and truck backing events. Finally, participants grabbed reflective vests and ear plugs before walking through customs and across the flight line to see the real deal. Here, cargo planes are turned around—workers consolidate and refuel the planes—in just one hour and 20 minutes at UPS Anchorage Gateway, a 24/7 operation with eight UPS delivery centers. Open since the fall of 2008, the UPS Anchorage Gateway hub plays a critical role in UPS’ success as a top six global forwarder, delivering 16 million packages a day.

www.ndtahq.com | 31

An active forum for ndta a-35s

DTA’s Action-35ers found themselves very active during this year’s Forum as they honored the committee’s founder and mentor of 40 years, welcomed the A-35 Executive Council to its first Forum, continued time-honored traditions and built new ones. The fun began on the first evening of the Forum, at a local restaurant in downtown Anchorage, where A-35ers kicked off the Third Annual Young Professionals Social. There, logisticians met up before sampling Saturday nightlife in Anchorage. The crowd included chapter members from Regimental, Scott-St. Louis, and Washington, DC to name a few; exhibitors from as far away as Afghanistan; and a special visit from a Forum Co-Moderator. Monday morning, the mentorship began at the A-35 Breakfast and Annual Meeting. New members got to know more about the program and the special duties A-35ers volunteer for during the Forum, including selling ducks and escorting VIPs at the Chairman’s Awards Dinner. This was an extra special meeting, as members learned how the program got its start, from COL Denny Edwards, USA (Ret.), NDTA Vice President of Marketing and Corporate Development, who in 1972 (then CPT Edwards) became the most junior officer to win the DOD Distinguished Service Award for founding the program. NDTA A-35 Chair Lori Leffler recognized COL Edwards with an award for his vision and dedication to NDTA’s junior leaders. COL Edwards is retiring from NDTA this year,

but the NDTA Headquarters will continue to have an A-35 Liaison, in addition to the A-35 Executive Council (established this Spring), to carry on the committee’s traditions for another 40 years! On Monday afternoon, the A-35 Professional Session tried a new look, with a panel comprised of both junior and senior leaders for a vibrant discussion on mentorship. The committee was grateful that two of the Forum’s featured speakers, RADM Mark Buzby, USN, Commander, Military Sealift Command, and MG Roger Mathews, USA, Deputy Commander, USARPAC, were able to share their insights with the group. Following the Junior/Senior Mentor Dialogue, the NDTA Chapter Best Practices session included an A-35 panel member who shared what it takes to have a strong A-35 program at the chapter level. Early Tuesday morning, volunteers and athletes found their way downhill to the coast, where NDTA held its third Annual A-35 Scholarship 5K. The run/walk began at 0630 on the Tony Knowles Coastal Trail and was sponsored by Echo Global Logistics. The rain held out and the temperature remained just above freezing, but the sun had not risen by the start time, so thanks are due to Landstar and UTi for their flashlight donations. Craig Hymes of Supreme Group won his 2nd Forum 5K and 3rd consecutive A-35 5K, to include the one held during the SDDC Symposium in March. His time of 17:03 is a new A-35 5K record, passing US Navy LT Andrew Krantz’ 17:09 finish at the first 5K during the 2010 Fo-

rum in Washington, DC. In Olympic fashion, silver and bronze medals were awarded to second and third place, along with gold medals for the top female and top A-35er. A spotlight shone on the opportunity NDTA’s young logistics professionals have to meet senior leaders as A-35ers escorted VIPs to their tables that evening at the Chairman’s Awards Dinner. After dinner, the A-35ers saw their hard work selling ducks pay off, as they dropped 1500 rubber ducks down to a bulls-eye. Each duck is sponsored by an attendee for a chance to win a sponsored prize with all proceeds going to the NDTA Scholarship Fund. During the International Awards Luncheon on the Forum’s final day, LTG Ken Wykle, USA (Ret.), awarded Lori Leffler, the A-35 Committee Chairperson and Hertz Global Government Strategic Manager, the NDTA President’s Special Achievement Award for 10 years of dedication to the A-35 Program. This year, Ms. Leffler’s contributions included a donation of 40,000 car rental vouchers to young troops returning from military service. She remained on stage and was joined by Echo Global Logistics VP, Sales, Scott Boyer, for a medal ceremony recognizing the top 5K finishers. This year proved to be especially busy for NDTA’s A-35ers and there is only more to come for the committee’s next 40 years. Whether you are young, or just young at heart, there are always ways to volunteer to support this next generation of transporters and logisticians, get connected with the A-35 Program at www.ndtahq.com/A35.htm.

2012 Forum Attendee Official Survey Results Following the Forum each year a survey is sent out to attendees to solicit feedback. This feedback provides a basis for the NDTA staff to make improvements each year and to increase the value of the Forum for attendees. Thank you to those of you who took the time to respond! What is your primary reason for attending the Forum? Networking 52%; Professional Sessions 20%; Keynote/Featured Speakers 16%. Which TWO networking opportunities provide the greatest benefit to you? Expo Hall 73%; NDTA-FedEx Opening Reception (Sunday) 30%; NDTA-APL Chairman’s Awards Dinner/Reception 24%. How would you rate NDTA’s Pre-Forum/Forum information sharing? The following percentages represent ratings of very good or excellent: Individual Online Registration 90%; Exhibitor/Sponsor Online Registration 92%; Online Exhibitor Service Kit 86%; Forum DTJ 84%; Forum Daily Newspaper

32 |

Defense Transportation Journal

88%; Forum Welcome Gram 85%; NDTA Connect 66%; NDTA Global Match 63%; Pre-Forum Email Blasts 81%; On-site Email Blasts 75%; Social Media (Facebook/Linked-in/Twitter) 61%. Which TWO Speakers did you find most informative? The top three picks were: Hon. Alan Estevez 51%; General Fraser 45%; General Johns 35%. Which TWO NDTA Forum Professional Sessions did you find most valuable? Top three selections: How to do Business with the Gov’t 30%; The Service Contract Act – Implications for Government Contractors 24%; Future AQ 21%. Complete video presentations of Forum Featured Speaker Remarks are available when logged

December 2012

in at www.ndtahq.com. Were you aware these videos are available to NDTA Members? Yes 47%; Yes – and will share 18%; No 35%. Do you plan to attend the 67th Annual NDTA Forum, September 7-11, 2013 in San Antonio, Texas? Yes – Individual 47%; Yes – Exhibit & Sponsor 27%; Yes – Exhibit ONLY 9%; Yes – Sponsor ONLY 7%; No – Individual 9%; No – Exhibitor or Sponsor 3%. Additional survey feedback and miscellaneous comments, including responses from NDTA President, LTG Ken Wykle, are available online at www.ndtahq.com/forum.htm (last link on the right-hand side). If you did not get a chance to respond or have additional suggestions for next year’s Forum please email ken@ndtahq.com.

NDTA Awards Photo Album 66th Annual NDTA Forum & Expo

Anchorage, Alaska NDTA National Transportation Award

National Defense Leadership Award

Mrs. Marcia G. Taylor

General Ann E. Dunwoody, USA (Ret.)

President & CEO Bennett International Group

NDTA DOD Distinguished Government Service Award

Vice Admiral Mark D. Harnitchek, USN, SC

Former Commanding General Army Materiel Command

Director Defense Logistics Agency

Presented by Ray Ebeling

Induction into the Ancient Order of Saint Christopher

NDTA President’s Award

Innovative Logistics Service Award

COL Dennis L. Edwards, USA (Ret.)

Strategic Movement Center, Headquarters, USCENTCOM

General Raymond Johns, USAF Commander Air Mobility Command

Presented by Ray Ebeling

VP of Marketing and Corporate Devel., NDTA Mrs. Karen Edwards Transportation Corps Regiment’s Patron of the Wheel, Patronus Rotae Award Presented by Ray Ebeling

Presented by Ray Ebeling

Accepted by Commander James Kriner, Acting Division Chief, J3 Operations Strategic Deployments, CENTCOM and Mr. Daren Baker, USTRANSCOM Liaison Officer to CENTCOM Presented by Ray Ebeling

NDTA Corporate Distinguished Service Awards

American Shipping & Logistics Group APL, Limited Avis Budget Group Baggett Transportation Booz Allen Hamilton Chalich Trucking

DB Schenker DHL Global Forwarding FedEx Final Mile Logistics FMN Logistics The Hertz Company

InterContinental Hotel Group Landstar System, Inc. Maersk Line, Limited National Air Cargo Panther Expedited Services The Pasha Group

R & R Trucking Raith – CTS Logistics Southwest Airlines Supreme Group USA, LLC Transportation Institute UPS

www.ndtahq.com | 33

NDTA Awards Photo Album NDTA Presidentâ&#x20AC;&#x2122;s Special Achievement Awards

NDTA International Chapter of the Year Awards

category I

Mr. Dale Cozart

Ms. Lori Leffler

Charleston Chapter

Washington, DC Chapter

Presented by Ray Ebeling

North Pole Chapter

Accepted by Bob Sherrill Presented by Ray Ebeling

Young Executive of the Year Awards

civilian

military

category II

Brian Baney

Major Jason K. Okumura, USAF

San Antonio Chapter

Presented by Ray Ebeling

Scott-St. Louis Chapter

Washington, DC Chapter

Accepted by Bill Fisher

NDTA Distinguished Service Awards

category III COL Rick Barnaby, USA (Ret.)

Mr. Will L. Martin

Washington, DC Chapter

San Francisco Bay Chapter

Mr. Roger Buls

Mr. David McClean

North Pole Chapter

Scott-St. Louis Chapter

Mr. Mike Carnes

Mr. Mike McVeigh

Scott-St. Louis Chapter

Valley of the Sun Chapter

Ms. Terri Dalton

LCDR Brian Mowery, USN

Ms. Suzanne Fairbanks

Mr. Ralph Percival

San Joaquin Chapter

Charleston Chapter

North Pole Chapter

Scott-St. Louis Chapter

Mr. Thomas Fortunato

Mr. Adam Pincus

MAJ Justin S. Herbermann, USA

Mr. Harry L. Reese

Washington, DC Chapter

San Antonio Chapter

Fort Campbell-Tuckasee Chapter

San Antonio Chapter

Mr. Charlie Hermosa

Mr. Larry Santor

San Francisco Bay Chapter

Valley of the Sun Chapter

Mr. Adam Leggett

Mr. Bob Sherrill

North Pole Chapter

Ms. Kristin Martin-Wakefield Scott-St. Louis Chapter

34 |

Defense Transportation Journal

December 2012

Scott-St. Louis Chapter

Accepted by COL David Pollard Presented by Ray Ebeling

DoDâ&#x20AC;&#x2122;s Partner of Choice for Multimodal Logistics & Strategic Sealift

NDTA Awards Photo Album NDTA International A-35 Chapter of the Year Awards

Colonel Norbert Grabowski Membership Recruiting Awards

category I

North Pole Chapter

overall & A-35 Recruiter

Accepted by Adam Leggett

Accepted by Bob Sherrill

North Pole Chapter

Mr. Joe Escalera

Presented by Ray Ebeling

category II

outstanding Recruiter

Regimental Chapter

Accepted by Steve Bright

Charleston Chapter

Mr. Steve Bright

Presented by Ray Ebeling

category III

outstanding Recruiter

Washington, DC Chapter

Mr. Chuck Muscio

Presented by Ray Ebeling

Charleston Chapter

Accepted by Charlie Fletcher

36 |

category I

Defense Transportation Journal

Accepted by Charlie Fletcher

December 2012

Charleston Chapter

North Pole Chapter Accepted by Bob Sherrill Presented by Ray Ebeling

Uniting Forces to serve

• Flatbed • van • specialized • multi-modal • nvocc • ltl • 3pl services • customs broker • Freight Forwarder • project management • warehousing

call 855-887-4468 www.goUtsi.com Members of

email us at: universal-gov@goutsi.com Plus

www.facebook.com/universaltruckloadgovernmentservices

Chairman’s Circle Plus Member Since 2004

NDTA Awards Photo Album Military Unit Awards

Presented by Transportation Institute

Army—Active Component

Army—National Guard

Army—Reserve Component

US Army Active Component 66th Transportation Company 39th Transportation Battalion Kaiserslautern, Germany

1644th Transportation Company 1144th TMT Battalion Rock Falls, Illinois Accepted by CPT Michael Barton, ARNG Escorted by BG Paul Hurley, Jr., USA

481st Transportation Detachment (MCT) 316th Quartermaster Battalion Bartlesville, Oklahoma Accepted by SSG Rachel Berkowitz, USAR Escorted by BG Paul Hurley, Jr., USA

Marine Corps—Active Component

Marine Corps—Reserve Component

Navy—Active Component

Combat Logistics Battalion 3 (CLB-3) Combat Logistics Regiment 3 3rd Marine Logistics Group MCBH, Kaneohe Bay, Hawaii Accepted by Lt Col Justin Reiman, USMC Escorted by Maj Gen Peter Talleri, USMC

6th Engineer Support Battalion (6TH ESB) 4th Marine Logistics Group Marine Forces Reserves Portland, Oregon Accepted by Maj Juan Svenningsen, USMCR Escorted by Maj Gen Peter Talleri, USMC

Commander, Logistics Group Western Pacific (COMLOG WESTPAC) Commander, US Seventh Fleet Singapore Accepted by CAPT Jesus Cantu, USN, SC Escorted by RADM William Brown, USN

Navy—Reserve Component

Air Force—Active Component

Air Force—Reserve Component

DLA Distribution Joint Reserve Force Defense Logistics Agency Joint Force (DLA J9) Fort Belvoir, Virginia Accepted by CAPT Thomas McGrath, USNR Escorted by RADM William Brown, USN

730th Air Mobility Squadron Air Mobility Command (AMC) Yokota Air Base, Japan Accepted by Lt Col Brett Sowell, USAF Escorted by Brig Gen Gregory Touhill, USAF

73rd Aerial Port Squadron Air Force Reserve Command Fort Worth, Texas Accepting Lt Col Kevin Mensing, USAFR Escorted by Brig Gen Gregory Touhill, USAF

38 |

Defense Transportation Journal

December 2012

NDTA Awards Photo Album Coast Guard

SDDC Excellence in Traffic Management Awards Presented by Major Genereal Thomas Richardson, USA and Command Sergeant Major Cedric Thomas, USA

Army

Navy

SFC Maria A. Caulford US Army Africa, G4 Mobility, Distribution and Mobility Division Vicenza, Italy

Pamela Young NAVSUP Fleet Logistics Center Norfolk, VA

Marine Corps

Air Force

Coast Guard

GySgt Alex Garciasilva Marine Corps Base Camp Lejeune, NC

SMSgt Olando T. Watt 379th Expeditionary Logistics Readiness Squadron Al Udeid Air Base, Qatar

Frank Mallard Base Boston Boston, MA

DLA

AAFES

DCMA

Elva Aragon Defense Energy Support Center San Antonio, TX

Carlos Rios Japan Distribution Center Yokota Air Base, Japan

Joe Caldwell DCMA Southest Transportation Team Atlanta, GA

US Coast Guard Air Station Barbers Point (ASBP) United States Coast Guard District Fourteen Kapolei, Hawaii Accepting AMT2 Edward Collum, USCG Escorting RADM Thomas Ostebo, USCG

www.ndtahq.com | 39

Chapter Spotlight NDTA Atlanta Jeff Campbell

By Brian Waters, Atlanta Chapter Scholarship and Mentor Program Coordinator

Chapter Liaison Putting the A in NDTA!

Atlanta, GA, is near the top of NDTA Chapter listings for many more reasons than its position in the alphabet. Its roots can be traced to the association’s very beginnings. The chapter formed in 1947 as part of the Army Transportation Association, and two years later, the re-named National Defense Transportation Association (NDTA) held its fourth annual Forum in Atlanta. Twenty years later, the Forum returned to Atlanta, followed by a third visit in 1985. Most recently, the NDTA Expo was in Atlanta in 2009 during the SDDC Symposium.

Rashonda Brown of Clark Atlanta University accepts the 2011 Atlanta Chapter Lt Gen Edward Honor Memorial Scholarship from Brian Waters, Atlanta Chapter Scholarship and Mentor Program Coordinator.

It was an Atlanta Chapter Member, Larry Thomas, Georgia State President, who led the association’s social media initiative. In addition to establishing a LinkedIn Group for the chapter, and one for state and regional presidents, the active NDTA Membership Group he created four years ago now boasts more than 1,000 members. NDTA Atlanta marked its 65th year in 2012 with events each month, featuring outstanding speakers from the Federal Reserve Bank of Atlanta, the National Archives at Atlanta, TSA, UPS, and the VA. In October the chapter held a timely election season meeting featuring Georgia House Representative Ed Setzler, a member of the House Transportation Committee. This month, another truckload of toys is expected for the annual Toys for Tots Lunch as Atlanta Chapter members make plans for another successful year. They’re well on the way, having already recruited the fourth-highest amount of new members out of sixty-plus chapters in the first quarter of the 2012-2013 NDTA Recruiting Drive. In addition to regular meetings, the Atlanta Chapter also boasts opportunities like the annual golf tournament and mentorship program. Visit www.ndtaatlanta. org to get involved.

NDTA Atlanta annually donates a truckload of toys to the USMC’s Toys for Tots program. Last year’s Holiday Event featured a Georgia National Guard Chaplain’s message on what each of us can do to bring joy, peace, and love to others through organization projects supporting the local community.

40 |

Defense Transportation Journal

Atlanta Chapter Member named Metro Atlanta Chamber of Commerce “Supply Chain Professional of the Year”

December 2012

John Mascaritolo, winner of the 2011 Supply Chain Professional of the Year by the Metro Atlanta Chamber.

ohn Mascaritolo was recognized as the winner of the 2011 Supply Chain Professional of the Year by the Metro Atlanta Chamber (MAC) of Commerce. John is the director of the Center for Supply Chain Management for Clayton State University’s AACSBaccredited College of Business. He was recognized as the individual who made a significant contribution in advancing the supply chain sector in 2011. The MAC Supply Chain Forum and Awards were created to recognize outstanding individuals and companies in metro Atlanta whose actions have advanced the state of the supply chain industry and promoted its continued growth. Clayton State, along with Clark Atlanta University, enjoys a fruitful relationship with the NDTA in Atlanta. Students participate in the Mentor-Protégé Program and have been frequent NDTA Scholarship awardees. Clayton State is a unit of the University System of Georgia, and is an outstanding comprehensive metropolitan university located 15-miles southeast of downtown Atlanta. Metro Atlanta has the nation’s fifthlargest concentration of supply chain companies with more than one million employed in Georgia logistics. Atlanta is a global logistics center with more than 130,000 supply chain jobs, the world’s busiest airport, and a position as the global leader in supply chain management software. DTJ

Pages Past/Pages Forward – Pages Final! COL Denny Edwards, USA (Ret.) VP Marketing and Corporate Development

ugust 1991, 21 years ago, NDTA launched “Pages Past”, a historical feature in the DTJ in anticipation of celebrating the Association’s 50th Anniversary in 1994. Every month of NDTA’s countdown to its 50th Anniversary, members could read about significant past achievements, transportation leaders, major issues of the day, annual Forums, and honored award winners; a summary of NDTA’s first 50 years. After the Anniversary celebration subsided “Pages Past” continued to chronicle the Association’s past, until in 2009 it was decided to shift the content focus to NDTA’s future. Hence the title change to “Pages Forward”. Now, after nearly 125 articles, the last pages are being written—the “Pages Final”. 2012 will be my last year on the NDTA Staff, as I will be retiring after nearly a quarter of a Century in the headquarters office and nearly 50 years as an NDTA member. As seems to be the custom when an “old timer” leaves, they have granted me license to reminisce a bit; to look at the highs and lows, the successes and the foul-ups, the best and the less-than-best. And too, to offer some personal observations and suggestions for the future. Here then are my thoughts, my personal views and a few challenges for the years ahead. The words and opinions that appear below are strictly my own. They do not represent the DOD, US Government, transportation/travel/logistics industry, or NDTA. I openly admit to presenting them in “The Top 10 List” format from The Tonight Show—my apologies to Dave!



Best Memories of NDTA

The good people, the good fellowship, and, the loyalty of our members to the NDTA Family—something rarely found in many organizations today. And

from a personal prospective, the opportunity for me to work with five different NDTA Presidents: CAPT Gerald Collins, (USN, Ret.); Brig. Gen. (USAF, Ret.) Mal Hooker (twice); RADM (USCG, Ret.) Norm Venzke; LTG (USA, Ret.) Ed Honor; and LTG (USA, Ret.) Ken Wykle. I learned to appreciate and benefit from their personal leadership styles, and their depth of commitment to NDTA. As one example, it is little known that Mal Hooker forfeited most of his monthly salary to help see the association through troubled financial times during his first term in office.



Hard to Believe Category

That the three largest transportation hubs in the United States (New York, Chicago, and Detroit) do not have strong NDTA chapters.

down on the mountain roads above Salt Lake City with its bus load of VIPs on the way to a Scholarship event. Or, the predictable Sunday afternoon wind and rain that poured down minutes after 1,300 A-35 rubber ducks were dropped into one of Disney World’s lakes, only to be immediately blown back onto land, streets and parking lots in a fierce wind and torrential rainstorm that scattered ducks for miles in all directions! The same dark cloud hovered over the A-35 Duck Race at the Kansas City Forum in the Hyatt Hotel. In the absence of a suitable water venue, the ducks were dropped to the ground floor of the atrium lobby from four stories above, managing to hit several attendees in the audience.



Overall Best Forums



Most Embarrassing Moments

There were no awards presented at the Awards Luncheon at the 1988 Hawaii Forum. The plaques and trophies had been safely locked away five floors below the ceremony in the Forum office. Incredibly they were not missed until the moment the presenter turned to pick up the trophies to present to the recipient. Another embarrassing moment occurred when the bus contracted (and inspected by NDTA transporters, no less) broke

• Highest attendance at a Forum: Washington, DC with 1,510 attendees • Most Profitable Forums: Reno, Nevada and Washington, DC • Program/level of speakers: Keynote by the Secretary of Defense at the Houston Forum in 1998 • Most popular Forum cities: San Francisco and Washington, DC (tie) • Most repeated Forum cities: San Francisco, Washington, DC, New Orleans, Salt Lake City, and Atlanta www.ndtahq.com | 41

fledged commitment and support of the United States Department of Transportation. The need is still there. An organization such as NDTA, that has the history, respect, as well as the ability to organize and lead a group of like-minded organizations, should again spearhead efforts to organize a nationwide commemoration of transportation.



The A-35 Program Expanded, Broadened, and Membership Increased Significantly

the early 1990s under the expert guidance of its new Publisher, Carden Jennings Publishing, in Charlottesville, VA. 50th and 60th Anniversary Yearbooks were published, the NDTA Gram an electronic newsletter was added, in the mid-2000s the association considerably enhanced and expanded its website, and in most recent years the association learned to embrace social media.

Dignitaries and VIPs Attending NDTA Events

• President Lyndon Johnson at an NDTA event celebrating National Transportation Week in 1966 • President Gerald Ford at a White House briefing for NDTA Officials in 1977 • Vice President Spiro Agnew, presenting the National Transportation Award at the 1972 Forum • General Colin Powell, Chairman, Joint Chiefs of Staff, at the NDTA Leadership Award Presentation in 1991 • First Lady Pat Nixon in 1973 • Movie and TV stars – Red Skelton, McLean Stevenson, Gary Burghoff at the Orlando Forum – 1996



Significant Growth of NDTA



Major Upgrade to the Defense Transportation Journal

The DTJ increased in scope, quality, and went to a predominantly full color format in 42 |

Defense Transportation Journal

Missed Opportunity – NTW

National Transportation Week and National Defense Transportation Day are potentially the two largest nationwide celebrations of the importance of transportation to our economy and our life style. Both have been officially recognized by the White House with yearly Presidential Proclamations. In 2003 and 2004 NDTA led a coalition of 208 prominent transportation associations, military and government organizations, and leading transportation, logistics and travel companies in the United States, in launching a program to expand awareness of transportation’s ay importance to the 13-19, Nation. Two large conferences and expositions were held in Washington, DC, with keynote Secretary of Transportation, Norman Mineta. This initiative was short lived due to a combination of unfortunate events, including key leadership changes, reduced budgets, and the less-than full-

December 2012

NDTA experienced its largest period of growth since World War II in the 1990s and 2000s. Forum attendance, numbers of exhibitors, sponsors, and new corporate members nearly tripled during the period.



torship Program grew rapidly and was added as a permanent A-35 activity. To assist in raising money for the NDTA Scholarship Fund, an A-35 5K Run Program was organized to complement the A-35 Duck Race as an additional source 1 of donations. The A-35 Com20 mittee was also asked and agreed to assist SDDC in its mentoring and 5K Run programs.



NDTA has long understood, since its founding in the early 1970s, that attracting talented young people represented the long-term future of the association. Under the expert 10-year leadership of Committee Chair, Lori Leffler, the A-35 program was dramatically expanded. A Board of Vice-Chairs was appointed to help spread the workload of new programs which were developed. The Men-



The 9/11 Disaster and its Aftermath

As the single worst act of terrorism ever perpetrated on the United States, the

In a war fought with stealth fighters, smart bombs, and night vision, the most important weapon could well be thermal socks. For more than 160 years, APL has been working to ensure our service men and women always have what they need to get the job done. Our unparalleled experience in ocean transportation and in-country logistics sets us apart from the competition. APL’s successful, long-standing relationship with the military proves that we have the resources and know-how to deliver when it counts. We won’t let you down, and more importantly, we won’t let down the troops who rely on the supply chain. We pride ourselves on being the mission critical link to success for our military yesterday and today, and we’ll be there for our troops tomorrow. To learn more about how we serve those who serve, visit www.apl.com/usflag.

U.S. Flag Services

www.ndtahq.com | 43

disaster had immediate and long lasting effects on our armed forces; the transportation, travel and logistics industry; and indeed the entire country. NDTA immediately canceled its 2001 Forum in Milwaukee; the first and only cancelation in the history of the association. Later in the year we published a Special 9/11 Impact issue of the DTJ, where leading NDTA corporate members assessed the short term and long term effects of the disaster. To this day, transportation, travel and logistics operations worldwide have been permanently altered. Finally, I Leave You with Three Thoughts for NDTA’s Future: 1. NDTA must re-double its efforts to attract and hold more young members so we can remain the association of choice—“The Association for Global Logistics and Transportation”. We will succeed . . . • if, we continue to provide meaningful benefits to our members. To do this we must understand that the priorities of Gen Y and Millennials are different than in generations past. A recent study shows they turn to Google, Twitter, Facebook, and You Tube in search of information, they distrust traditional advertising and promotion, they want instant gratification, they seek the opinions of others before they act, they value comfort more than status, and that they are stretched thin 44 |

Defense Transportation Journal

•

financially. They are the most educated, diverse, and soon-to-be largest American generation ever. That means they will provide the largest pool of potential new NDTA members for years to come. If, we continue to concentrate on becoming more relevant to these young and future members in both their personal and professional lives. If, we re-direct and expand our communications and promotion to Gen Y and Millennials in ways that they use and prefer, i.e. social media—not voice, fax, US Mail, and (as the volume of spam grows), increasingly not even traditional email. If, we change a certain number of our chapter events, meetings, and activities to what may be more interesting to them. Chapters should try to depart occasionally from the “noon luncheon with speaker” format. If, we convince our larger corporate members to allocate a certain number of their corporate individual membership to their A-35 members, and then invite the A-35’ers to accompany their boss or senior staff member to an NDTA event.

If, all of the above happens, then, the NDTA brand will continue to prosper and grow and serve future generations just as it has in the past.

December 2012

2. Gradually start re-formatting our major annual meetings/conferences and Forums toward events that are more in keeping with the austere times that we currently face (i.e. reduced travel budgets, dollar limits on large meetings, reductions of attendees able to attend traditional meetings). This means considering smaller regional mini-forums, so-called “drive in meetings,” and one-day seminars. It could also mean considering every other year Annual Forums, with the off years dedicated to smaller travelling conferences where NDTA takes the meeting to the audience rather than the opposite. Based on past experience, it also seems worthwhile to consider holding an Annual Forum in Washington, DC automatically every 3-5 years. Thought should also be given to jointly sponsoring events with other non-competitive, like-minded, and mission-similar organizations. 3. Continue to work on ways to move the DTCI to a win-win situation for both the government customer and the industry providers of transportation services. Industry dissatisfaction with the current system will continue to grow and stress the increasingly fragile government-industry partnership, unless new or improved procedures and regulations can be explored. The Defense Transportation System is best served when both parties are fully satisfied. Only by working together, can the partnership be strengthened and future defense challenges be met. As I close out my career at NDTA Headquarters I am very confident in the abilities of the two individuals that will take over my responsibilities. Sharon Lo, will be the Association’s new Meetings Planner, in addition to Managing Editor of the Journal, and Director of all printing and publications. Lee Matthews will be in charge of Corporate Membership Development and benefits, as well as Exhibit and Sponsorship sales. NDTA is in excellent hands with these two talented individuals. I wish both of them success in raising the NDTA brand to new heights; and I say thank you to all the NDTA members, exhibitors, sponsors and friends that I have met over the years. DTJ

Narrowing the Talent Generation Gap in US Distribution Irvin Varkonyi, President, Supply Chain Operations Preparedness Education (SCOPE) ivarkonyi@scopedu.com

n past issues of the DTJ, this column has discussed the talent shortage in logistics, and offered reasons for the shortage along with solutions through professional development. This topic continues to attract the attention of the corporate suite as noted by SupplyChainBrain.com and Aberdeen Group in October 2012: • In an interview with Tim Hotze, VP, Supply Chain Management, Panalpina USA, conducted by SupplyChainBrain.com, stated that the talent generation gap is one of the most critical issues for his company. • A research study, based on client surveys by the Aberdeen Group, stated that “Best in Class” performance by supply chain organizations required the ability to align learning objectives and performance goals to business objectives in a culture of learning and performance management supported by appropriate technology. “What we see specifically in my field of expertise,” said Hotze, “ is that a lot of young, talented engineers, industrial engineers, are coming into the marketplace, but it’s tough to attract them into traditional distribution operations. They are looking more at consulting or what are probably higher-paying jobs as their entry-level job. Many of them really like project work, and not so much something that’s distribution-related.”1 Clearly compensation levels in distribution are not sufficient to attract this expertise. Consulting offers greater reward than it appears to those companies that slug it out day after day moving goods and information for their customers. Perhaps our industry can raise its prices to shippers so that we can attract more talent? Sure! If you buy that, than as the proverbial saying goes, I have a bridge in Brooklyn to sell you. Hotze suggests there are steps that can and must be taken by our industry, such as greater utilization of social media within the business and offering opportunities to innovate by the workforce. We

can also note government efforts directed to its workforce, including incorporating a BYOD (Bring Your Device) policy that allows more telework options. He further suggests that the industry should consider more organized use of mentors who can help in recruiting and keeping talent in your organization. The defense industry should take particular note of the visibility (or lack thereof ) of logistics careers in defense. One symptom of such lack of visibility might be the challenges faced by local NDTA chapters to find supply chain students to compete for our scholarships. Surely, students can use our money. Why is it difficult to find enough of them? Are students uncertain about competing for funds from a defense association? As a member of the NDTA DC Chapter Scholarship Committee, as well as the National Defense Industrial Association’s Logistics Committee that offers complimentary registration for students to attend its annual conference, I see students’ amazement at the world of opportunity in defense contracting. The DC Chapter offers a mentor program which always fills its available mentee slots. The Aberdeen study noted, “Learning and development is no longer a ‘nice to

have’ for most organizations. Companies can no longer afford for learning or training to be a siloed function . . . workers move from organization to organization . . . learning can be the critical conduit for information transfer, aligning and information for the organization ensuring that companies build an internal talent pipeline that will enable them to succeed into the future.”2 The survey respondents indicated which learning methods were used the most and which were deemed to be the most effective. Six methods were used by 60% or more of respondents (see chart below).3 Aberdeen was concise and to the point on actions required to be undertaken by organizations to close the talent gap: 1. Validate learning impact with measurable data. Tools include training hours in the Balanced Scorecard approach that can correlate such hours with results. This may include productivity enhancements as well. Certification programs from organizations such as APICS, the Association for Operations Management, or the Council of Supply Chain Management Professionals can be utilized as a metric as well. continued on page 48

Learning method

Number of respondents using method

Respondents effectiveness rating of the method (with 1 being least effective and 5 being most effective)

Instructor-led, classroom based training

91%

4.06

Informal on-the-job training

87%

3.97

On demand online content in asynchronous process (not in real time)

77%

3.62

Formal on-the-job training

73%

4.11

Blended learning combining instructor led classroom and eLearning

63%

4.15

Formal mentoring

61%

4.07

www.ndtahq.com | 45

HONOR ROLL

SUSTAINING MEMBERS AND REGIONAL PATRONS

ALL OF THESE FIRMS SUPPORT THE PURPOSES AND OBJECTIVES OF NDTA

SUSTAINING MEMBERS ABF Freight System, Inc. Accenture Accor Hotels ACTCO-Afghanistan Logistics Air Transport Assn. of America Air Transport International, LLC AIT Worldwide Logistics, Inc. American Maritime Officers American Military University American United Logistics AMYX Apex Logistics Group ARINC Army Air Force Exchange Service Arven Freight Services, LLC Associated Global Systems Baggett Transportation Co. Boyle Transportation Cardinal Transport, Inc. Carlson Hotels Worldwide CGI Chalich Trucking, Inc. Chamber of Shipping of America Citigroup Comtech Mobile Datacom Corporation Covenant Transport Coyne Airways Coyote Logistics, LLC/General Freight Services CRST International, Inc. CSC Crowley Maritime Corp. CWT SatoTravel C2 Freight Resources, Inc.

REGIONAL PATRONS AAAA Forwarding, Inc. AAT Carriers, Inc. AFC Worldwide Express/R+L Global Services Aggreko International AKA a division of Korman Communities Al-Morrell Development/Morrell Int’l. Alaska West Express American Moving & Storage Assn. American Trucking Associations Anton Law Group Association of American Railroads ATS Specialized, Inc. Avis Budget Group Benchmarking Partners C5T Corporation Cargo Experts Corp. Cargotec USA, Inc. The Cartwright Companies Cavalier Logistics Center for the Commercial Deployment of Transportation Technologies (CCDoTT) Ceres Terminals, Inc. CGM Security Solutions, Inc. Chapman Freeborn Airchartering Chassis King C.L. Services, Inc.

46 |

DAMCO Dell, Inc. Delta Air Lines, Inc. DHL Express Door to Door Storage, Inc. Dynamics Research Corp. Enterprise Database Corporation Express-1 Fikes Truck Line GE Aviation General Dynamics/American Overseas Marine General Dynamics NASSCO GeoDecisions GID – Get It Done, LLC Global Maritime & Trans. School-USMMA Greatwide Truckload Management Hilton Worldwide HLC Government Services Hub Group, Inc. Intercomp Intermodal Association of North America (IANA) Intermarine, LLC International Longshoremen’s Association, AFL-CIO Intl. Organization of Masters, Mates and Pilots Interstate Worldwide Relocation Kansas City Southern Keystone Shipping Company Knight Transportation Krown1 Fzc KU Transportation Research Institute Kuehne + Nagel, Inc. Labelmaster

Liberty Global Logistics, LLC Liberty Maritime Corporation LMI Lockheed Martin Aeronautics Co. M2 Transport Mack Trucks, Inc. ManTech International Corp. Marine Engineer’s Benefits Association Martin Logistics, Inc. Matson Navigation Co., Inc. Mayflower Transit McCollister’s Transportation Systems, Inc. McLeod Software Menlo Worldwide Mercer Transportation Co. Military Officers Association of America MV Transportation, Inc. National Air Carrier Assn., Inc. National Van Lines North Carolina State Ports Authority NYK Logistics Americas Ocean Shipholdings, Inc. Ocean Star International, Inc. Old Dominion Freight Line, Inc. Omega World Travel One Network Enterprises, Inc. OSG Ship Management, Inc. Overdrive Logistics, Inc. Owner-Operator Independent Drivers Association Panalpina Parts Associates, Inc. (PAI) Pilot Freight Services PODS Port of Beaumont Port of San Diego

Pratt & Whitney Prestera Trucking, Inc. Priority Solutions International Priority Worldwide Services PRTM Management Consultants, LLC Qualcomm Incorporated Radiant Logistics Partners, LLC Ridgeway International Rock-It-Cargo USA, LLC Rockey’s Moving & Storage, LLC Sammons Trucking Savi, a Lockheed Martin Company Sea Star Line, LLC Seafarers Int’l Union of N.A. AGLIWD Sealed Air Corp. Sealift, Inc. Southwest Airlines SRA International, Inc. Tamerlane Global Services Teradata Corporation Textainer Equipment Management Totem Ocean Trailer Express, Inc. (TOTE) TQL Transportation Institute Transportation Intermediaries Assn. (TIA) Transportation Management Services Tri-State Motor Transit, Co., (TSMT) Tucker Company Worldwide, Inc. Union Pacific Railroad United Airlines United Van Lines, Inc. UTi Worldwide, Inc. UTXL Wagler Integrated Logistics, LLC Worldwide Aeros Corp

Corporate Flight Management Dollar Thrifty Automotive Group EADS North America Enterprise Holdings Erudite Company Estes Forwarding Worldwide, LLC Europcar Car & Truck Rental Executive Apartments, Inc. Federal IT Consulting (FEDITC), LLC FlightWorks FMN Logistics Fox Rent A Car Goverline Logistics Great American Lines, Inc. Green Valley Transportation Corp. Hanjin Intermodal America, Inc. Hawaii Air Cargo, Inc. Holiday Inn VA Beach – Norfolk Hotel & Conference Center HudsonMann, Inc. Hyatt Hotels and Resorts Innovative Green Solutions JAS Forwarding Kalitta Charters, LLC LMJ International Logistics, LLC Logistics Management Resources, Inc. LTD Hospitality Group Lynden, Inc.

Marriott Hawaii Resorts & Hotels Marriott International MBA | Morten Beyer & Agnew McLane Advanced Technologies MCR Federal, LLC (MCR) Meyer Trucking, Inc. Mi-Jack Products & Technology Military Sealift Command (MSC) Miramar Transportation mLINQS, LLC MRA Experiential Tours & Equipment Naniq Systems, LLC NCI Information Systems, Inc. NFI Numerex Cororation Oakwood Corporate Worldwide ORBIS Corp. OTO Hospitality Development Overwatch, Inc. Passport International, Ltd. Patriot Contract Services, LLC Payless Car Rental Philadelphia Regional Port Authority Phoenix International Freight Services, Ltd. Pitt Ohio Port of Port Arthur Port of San Diego Portus

Reckart Logistics, Inc. Royal Trucking Company Scan Logistix, Inc. Seabridge, Inc. Sea Box, Inc. Secured Land Transport SkyLink—(USA) SR International Logistics, Inc. Stratos Jet Charters, Inc. Suite Solutions TAPESTRY - FSG Tennessee Steel Haulers Turnkey Transportation Services Trailer Bridge, Inc. Trailer Transit, Inc. Trans Global Logistics Europe GmbH TRI-STATE Expedited Service, Inc. Triton Systems, Inc. Truva International Transportation & Logistics Try Tours Expediting Services Unified Consultants Group, Inc. Unimasters Logistics PLC US Bank Freight Payment US Door & Building Components Utley, Inc. The Virginian Suites YRC Worldwide

Defense Transportation Journal

December 2012

AAR CORP + PLUS Agility Defense & Government Services + PLUS American Shipping & Logistics Group (ASL) + PLUS APL Limited + PLUS Atlas Air Worldwide Holdings + PLUS The Boeing Company + PLUS Bennett Motor Express, LLC + PLUS Bristol Associates + PLUS Choice Hotels International + PLUS CEVA Logistics + PLUS Cubic Global Tracking Solutions, Inc. + PLUS FedEx + PLUS Final Mile Logistics + PLUS Hapag-Lloyd USA, LLC + PLUS Horizon Lines, Inc. + PLUS IBM + PLUS InterContinental Hotels Group + PLUS Landstar System, Inc. + PLUS Maersk Line, Limited + PLUS National Air Cargo + PLUS Panther Expedited Services, Inc. + PLUS Ports America + PLUS Rock-It Cargo USA, LLC + PLUS Science Applications International Corp. (SAIC) + PLUS Supreme Group USA, LLC + PLUS Titan Services + PLUS Universal Truckload Services, Inc. + PLUS UPS + PLUS A Team Logistics LLC American Roll-On Roll-Off Carrier, LLC BNSF Railway Co. Booz Allen Hamilton CorTrans Logistics, LLC CSX Transportation DB Schenker

DHL Global Forwarding Evergreen International Airlines, Inc. Global Aviation Holdings Inc. The Hertz Corporation Innovative Logistics, LLC International Shipholding Corp. KGL Holding Lockheed Martin

Norfolk Southern Corporation Northrop Grumman Corporation Omni Air International The Pasha Group R&R Trucking Raith-CTS Logistics SkyBitz

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 | 47

Kent Gourdin

American Experience – Building the Alaska Highway American Experience – Building the Alaska Highway, (PBS Home Video, 2005), available from Amazon.com, $24.88.

guess I should have called this recommendation DVD Ideas, but I couldn’t resist. I remember seeing this show a few years back and thinking that it was terrific. At the time, building the Alaska

continued from page 7

of you that responded to the survey. The feedback is valuable and helps shape the next Forum. A lot of uncertainty continues to cast a shadow over 2013 and we expect it to be a challenging year. DOD business opportunities will decline, and pressure to reduce costs will continue. For the Association, the impact of the GSA Scandal continues to be a factor in our planning and execution. The OMB Memorandum of 11 May 2012 and the OSD Memo of 29 September 2012 place significant constraints on government/military participation in conferences. The individual services, with the exception of the Army, have not published their conference policies. The published Army directive may be revised as a result of the 29 Septem-

Highway was referred to as the largest US construction project since the Panama Canal. This DVD really gives the viewer an appreciation for the horrific conditions the workers endured and the sheer muscle required to get the thing built in well under a year’s time. For the price of a good book, this program is certainly worth the investment. DTJ ber OSD Memorandum. We are closely reviewing these documents to ensure NDTA compliance and will discuss the potential implications with other Associations, USTRANSCOM, and the Services. As we begin to plan for the San Antonio Forum, you should also start planning now to attend—annotate the dates on your calendar (7-10 Sep 2013), ensure funds are in your budget, and provide ideas for the program. The focus of the 2013 Forum will be on training and education—speakers, breakout sessions, networking events, and perhaps the opportunity for off site visits to Transportation and Logistics distribution facilities. Thank you for your great support of NDTA and for the work you do every day in support of the US Economy and our National Security. See you in San Antonio, Texas 7-10 September 2013! DTJ

continued from page 45

2. Define organizational core competencies and align learning goals with them. 3. Let consumerization of technology inform solution decisions, which will lead to increased support of social and mobile learning. 4. Involve the organizational “ecosystem,” where learning is not restricted to the nucleus firm, but is extended to customers and channel partners. The latter is likely a statement agreeable with Mr. Hotze of Panalpina. Learning at Panalpina would involve its external stakeholders including customers, not just its internal organizations. If we have moved from adversarial to collaborative relationships in transacting business, should we not consider doing the same with workforce learning? It’s important to consider ways all of us can help to narrow the talent gap. Perhaps NDTA chapters can consider this topic for a lunch or dinner meeting that includes young employees, students that are potential employees, and senior corporate/organizational leaders to interact with the attendees. Good luck. DTJ 1 Interview, Supply Chain Brain, Oct 8, 2012 2 Aberdeen Group, “Learning and Performance, Developing for Business Results,” Mollie Lombardi, October 2012 3 Aberdeen Group, “Learning and Performance, Developing for Business Results,” Mollie Lombardi, October 2012

DTJ Index of Advertisers Defense Transportation Journal Statement of Ownership, Management, and Circulation as required by the Act of August 12, 1970; Section 3685, United States Code, for Defense Transportation Journal, published bi-monthly at Alexandria, Virginia, for September 2012. 1. Location of known office of publication: 50 South Pickett St., Suite 220, Alexandria, VA 22304. 2. Location of the headquarters of general business office of the publisher: 50 South Pickett St., Suite 220, Alexandria, VA 22304. 3. Publisher: National Defense Transportation Association, 50 S. Pickett St., Suite 220, Alexandria, VA 22304; Publisher, LTG Ken Wykle, USA (Ret.); Editor, Dr. Kent Gourdin, College of Charleston, Charleston, SC; Managing Editor, Sharon Lo. 4. Owner: National Defense Transportation Association, 50 South Pickett St., Suite 220, Alexandria, VA 22304-7296 (an incorporated association). 5. Known bondholders, mortgages, and other security holders owning or holding 1 percent of more of total amount of bonds, mortgages or other securities: There are none. 6. Average number of copies each issue during the preceding 12 months: Total 8,853; paid circulation by mail, 8,353; sales through dealers, carrier or other means, 351; free distribution by mail or other means, 405; total distribution 8,853; copies not distributed, 95. Percent paid and/or requested circulation: 95%. Sharon Lo, Managing Editor.

48 |

Defense Transportation Journal

December 2012

APL.......................................................................43 ARC.......................................................................35 Bennett International Group............................14 Boyle Transportation...........................................6 Budget.................................................................22 Farrell Lines........................................................11 FedEx................................................................... C4 Landstar.................................................................9 Maersk Line, Limited...........................................1 Overwatch...........................................................12 SAIC.................................................................... C2 SkyBitz................................................................ C3 Southwest...........................................................13 UPS................................................................... TOC UTSI......................................................................37

Providing access where and when you need it most. We make goods and information accessible from around the world. That has special meaning to the U.S. Armed Services. Access to networks in more than 220 countries and territories gives you the flexibility to operate, innovate and lead change. Through access, FedEx is changing whatâ&#x20AC;&#x2122;s possible.

fedex.com

Defense Transportation Journal

Articles inside

NDTA Forum & Expo Wrap-Up

NDTA Awards Photo Album

Understanding the New Transportation Bill: What You Need to Know

FEATURES

Strategic Education Bridges the Gap Faster If Offered Early to Company Grade Officers