65th Annual NDTA Forum & Expo Wrap UP
December 2011
www.ndtahq.com
Arctic Journeys
Flying Amid the Raw Wilderness
The End State
Managing the DOD for the 21st Century UPS Awards Photo Album
Page 41
SAIC delivered, prepared, and fielded over 15,000 MRAP military vehicles in the past two years. Our fast and efficient joint logistics integration program provides solutions from C4ISR electronics networks to analytics to total asset visibility. Smart people solving hard problems. For more information, visit saic.com/natsec/mrap
Energy I Environment I National Security I Health I Critical Infrastructure © Science Applications International Corporation. All rights reser ved.
NYSE:SAI
maersklinelimited.com
Every Voyage has a Purpose
We have supported our armed forces for almost three decades by deploying our ships and utilizing our assets ashore. Our commitment to U.S. troops extends beyond our daily operations to partnerships with charitable organizations that support service members and their families. We are proud of the role we play in their success.
Copyright Š 2011 United Parcel Service of America, Inc.
Logistics is precise. When you need to get mission-critical air freight shipments to troops around the world, you want more than the range of transit times that many carriers provide. That’s why UPS gives you a choice of time- and day-specific air freight services so you get the predictability and reliability you need, with tracking and proactive notification along the way. Put the power of logistics to work for you. For one-day air freight quotes, pickups and support, call 1-888-830-3570 or email us at govsupport@ups.com. UPS is a proud supporter of the NDTA.
December 2011
FEATURES Arctic Journeys December 2011 • Vol 67, No. 6 Publisher
LTG Ken Wykle, USA (Ret.)
8
Flying Amid the Raw Wildness and Delicate Beauty of Alaska By Ellen Paneok
Editor
Kent N. Gourdin Managing Editor
Karen Schmitt | karen@ndtahq.com Contributing editor
Denny Edwards
The End State
12
Managing the DOD for the 21st Century By Mike Young
Circulation Manager
Leah Ashe
Publishing Office
NDTA 50 South Pickett Street, Suite 220 Alexandria, VA 22304-7296 703-751-5011 • F 703-823-8761 Graphic Design
Debbie Bretches Production Manager
NDTA Forum & Expo Wrap-Up
21
NDTA – UPS Awards Photo Album
41
Sponsored by
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 A-35 News | Lori Leffler . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Editorial | Dr. Kent N. Gourdin . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 President’s Corner | LTG Ken Wykle, USA (Ret.) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
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.
Strong leadership is needed: We Can Have it Both Ways! | Lee Jackson. . . . 47 Chapter spotlight | Jeff Campbell. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48 Pages future | COL Denny Edwards, USA (Ret.) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49 honor roll. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50
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.
chairman’s circle. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51
Postmaster: Send address changes to: Defense Transportation Journal 50 South Pickett Street, Suite 220 Alexandria, VA 22304-7296
Bookshelf Ideas. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52
Government News. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52 index of advertisers. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52
A-35
NDTA Headquarters Staff LTG Kenneth Wykle, USA (Ret.) President COL Mark Victorson, USA (Ret.) VP Membership COL Dennis Edwards, USA (Ret.) VP Marketing | Corporate Development Patty Casidy, VP Finance Karen Schmitt Director, Public Relations Christine Pooré Assistant, Public Relations Lee Matthews Marketing | Corporate Development Manager Leah Ashe Manager, Data Base Sharon Lo Executive Assistant Jeff Campbell PR Assistant | A-35 & Chapter Liaison Carl Wlotzko Coordinator, Banquet & Special Events Angie Payne Forum Administrative Assistant 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 DTJ Publication Schedule, 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 Karen Schmitt, Managing Editor, DTJ NDTA 50 South Pickett Street, Suite 220 Alexandria, VA 22304-7296 703-751-5011 • F 703-823-8761 karen@ndtahq.com
4 |
Defense Transportation Journal
|
NDTA Forum Success for A-35ers! Lori Leffler, CTC, A-35 Chair Global Government Strategic Manager, The Hertz Corporation
W
e held our 3rd 5K Run/Walk with our number of participants continuing to grow. Awards were presented to our fastest runners: Overall 1st – Craig Hymes 2nd – Gregory Bunn 3rd – Craig DeVito Female Vickie Culp Under 35 Craig Devito
Mark your calendars to run or walk with us in Denver during the SDDC Symposium. March 7—Shine, Rain or Snow— we plan to brave the weather in support of Camp Hope’s Chris Neal Farm. Thank you to everyone who supported all of our A-35 activities. The annual Duck Race raised over $5,000 as a result of the hard work by Jason Truenbach and his army of Duck Sellers including Justin Stevens and Taylor Fasching—our top sellers. LTG Robert Dail (Ret.) and COL Rod Mallette (Ret.) joined our annual A-35 Breakfast to share inspiration relevant to career growth in today’s dynamic transportation and logistics community. Looking beyond the Forum, the A-35 Committee spends a great deal of time reviewing our vision—“To be an active component of NDTA providing opportunities and developing tomorrow’s leaders”—to ensure that we are on task. With the implementation of our new A-35 Executive Council, we will be including another position: A-35 Vice Chair, (NonCommissioned Officers). The goal of this position will be to reach out to the active duty enlisted ranks in order to grow their participation in NDTA chapters and national activities allowing these members to benefit from NDTA involvement.
December 2011
More Executive Committee Positions
• A-35 Vice Chair (Industry) — Responsible for programs of interest to, and involvement of, our industry A-35ers • A-35 Vice Chair (Military) — Responsible for programs of interest to, and involvement of, our military A-35ers • A-35 Vice Chair (Fundraising – Ducks) — In charge of all aspects of the traditional A-35 Duck Race • A-35 Vice Chair (Fundraising – 5K Benefit Runs) — In charge of all aspects of the new 5Ks • A-35 Vice Chair (Membership) — In charge of A-35 member recruiting programs (individual, mil/gov/industry) • A-35 Vice Chair (CORP/Regional A-35 Liaison) — Provides link from A-35 Executive Council to 9 Regional A-35 Representatives and CORP • A-35 Vice Chair (Technology and Social Media) — Leads A-35 in the latest technologies that could support the NDTA mission WHAT’S HAPPENING IN OUR CHAPTERS NDTA A-35 Activities
• Atlanta–Launching their first Mentoring Program • North Pole University of Alaska Anchorage Briefing • San Antonio–Planning 1st 5K in May • San Francisco Bay Area–Monthly Meetings at California Maritime Academy • Scott/St. Louis–A-35 Mentor/Protégé & Membership Open House Feat “Speed Interviewing” • Tampa Bay– A-35 Social 2nd Thurs each Month • Washington DC–Annual Scholarship Auction/Mentoring Program What is happening in your chapter?
DTJ
EDITORIAL Adapting to a Changing World Dr. Kent N. Gourdin, Editor, DTJ Director, Global Logistics and Transportation Program College of Charleston
A
nother Forum has come and gone, and I firmly believe they just get better and better. The planning and execution of the event was absolutely flawless. Kudos to the NDTA Headquarters staff!! The social events were unique and fun. Finally, as always, the sessions provided the very latest information on both current issues and future plans. For me, this year’s take away was that the Defense Transportation System (DTS) is coming face-to-face with a dramatically different operating environment that could alter the very nature of that longstanding civilian/military partnership. As the United States continues to drawdown OIF/OEF, there will be less military cargo and passengers to move. Many of the corporate presenters in the professional sessions expressed concerns about how that business might be replaced. Their unease is well founded. Since the 1950’s, the Department of Defense (DOD) has relied on the civil sector to provide a large share of the nation’s contingency transportation. In exchange for committing aircraft to the Civil Reserve Air Fleet (CRAF) and ships to the Voluntary Intermodal Sealift Agreement (VISA), carriers can compete for peacetime contracts to move military cargo and people. The challenge for the DOD has been to balance the need to maintain peacetime readiness and utilization of organic transport resources while simultaneously diverting passengers and
cargo to the commercial sector. Too much emphasis on the former means under using the latter which could have long-term implications for future funding, while using more organic lift means less business for our airlines and steamship lines. For the past decade at least, requirements have far outstripped our organic capability, so that a huge amount of business was available not only for CRAF and VISA participants, but other firms as well. Unfortunately, that situation is going to change. Now, the balancing act between utilizing organic versus commercial lift becomes much for difficult. As one of the steamship line executives noted at the Forum, if business drops to a certain point, it will no longer be attractive for firms to maintain ships under a US flag. As a result, many of the vessels now registered in the US might be shifted to foreign flags so that the lines can reduce their costs, a move that could have negative long-term implications for the DOD. Similarly, participation in the CRAF becomes less appealing as well. As evidenced by their presence in large numbers at the Forum, air and steamship line executives are an incredibly patriotic bunch, but they still have to pay the bills. On the other hand, the Air Force and the Navy have aircraft, ships and personnel that they must utilize or, eventually, lose. So what is the answer? One possibility might be to expand cargo preference laws to require that
more government cargo moves on U.S. carriers. Past research has shown these laws have historically been successful at keeping ships in the U.S. flag fleet, but they have also resulted in significantly higher transportation costs to government shippers. Another option is to simply hope that companies will continue to participate in CRAF and VISA simply out of patriotism. I certainly don’t know the answer. But I do know that the CRAF has survived for almost 60 years, weathering economic ups and downs, deregulation, and the largest downsizing of US forces since World War II. VISA, though not as long-standing an agreement as CRAF, has also shown the ability to withstand the test of time. What we are embarking on is just another phase in these relationships. The government and our carriers will have to work together to ensure that these arrangements continue to do what they were intended for: to ensure that sufficient sea and airlift is available to the DOD in time of war. Clearly, the Air Force and Navy are still not in a position to buy and maintain fleets of aircraft and ships that have no value in peacetime, nor can the nation risk not being able to meet contingency transportation needs due to a lack of suitable commercial resources. The world continues to be a volatile place. We need the strength and flexibility of the DTS now more than ever. DTJ
66th Annual NDTA Forum & Expo
Sept. 22-26, 2012
www.ndtahq.com | 5
PRESIDENT’S CORNER Looking North LTG Ken Wykle, USA (Ret.) NDTA President
P
hoenix is in the rearview mirror and Anchorage is just over the horizon. Before we close the books on the 65th Forum, I want to thank everyone who attended. I understand the challenges many of you face during these difficult economic conditions, and appreciate your outstanding support of NDTA. We consistently strive to offer a professionally rewarding program that contributes to each attendee’s professional development. In this Forum Wrap Up edition of the DTJ, attendees will be reminded of the superb professional program and outstanding exhibits; those unable to join us will get a feel for the quality of the program from reports of the speakers’ remarks and session contents. All speakers and roundtables were videotaped and may be viewed at the NDTA Network [www.ndtahq.network. com]. Please provide your feedback on the value of the Forum and the videos. We also want to congratulate our awardees: Mr. Robert Coretz, Chairman Omni Air International—NDTA’s National Transportation Award; General Duncan J. McNabb, Commander USTRANSCOM—NDTA Leadership Award; the Honorable Alan Estevez, Assistant Secretary of Defense (L & MR)—the NDTA Distinguished Government Service Award; and Mr. Robert Agnew, President and CEO Morten, Beyer & Agnew, and Ms. Judy Silcox, Key Account Director, Government, Americas Sales Intercontinental Hotels Group (IHG)— the NDTA President’s Award. Thank you for your contributions in support of our economy and National Security. We also congratulate our Military Unit Award recipients, our corporate awardees and our chapter and individual awardees. NDTA sent a short survey to all attendees soon after the Forum. To those who responded, thank you. The overall response was low, therefore as we prepare for An-
chorage I ask for you feedback via email on the Phoenix Forum. Is the professional program structured about right—the speakers and roundtables in the morning, Expo at noon and the professional breakout sessions 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 networking opportunities or any other aspect of the event. 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. To me, no response means “carry on with the current program format.” Email your comments and suggestions directly to me at ken@ndtahq.com. As we look north to Anchorage, start planning now to attend. For many this may be a once in a lifetime opportunity to experience the last great frontier in the USA. The focus of the 2012 Forum will be on Professional Development and Education—speakers, breakout sessions, networking events and perhaps the opportunity for off site visits to Transportation and Logistics facilities like the hubs operated by the overnight small package carriers or ocean port operations. Possible session topics may include: logistics support in harsh environments, transportation and travel in a rugged environment, the Alaskan railroad, or logistics support in remote areas. There is a perception that it is a long way to Anchorage and flights are expensive. Distance is relative. For our Asian, west coast and Midwest members, the distance is reasonable. While it is risky to try and predict the price of airfares a year in advance, one may compare current prices. Members of the NDTA staff conducted a site visit during the last week in September 2011. Coach tickets were about
$475 round trip from Washington DC to Anchorage on Delta Airlines via Minneapolis, and slightly less on United Airlines through Seattle. The prices were less than from DC to San Francisco, or DC to Seattle. Watch the NDTA Gram, our website, and our social media throughout the year for information on the 2012 Forum. Again start planning now to attend in Anchorage, Alaska. Expand your experience of Alaska by arriving early or staying a few days post Forum to travel and enjoy nature’s beauty. We look forward to providing information on the program and destination, and responding to your inquiries. 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 Anchorage 22-26 September 2012! DTJ
W EL C M E
NEW corporate
members as of December 1, 2011
Sustaining patrons • Apex Logistics Group • Citigroup • Door to Door Storage, Inc. • Rockey’s Moving & Storage, LLC Regional patrons • Numerex Corp. • Pak Shaheen Freighters (Pvt) Ltd. • Professional Homestaging & Design, LLC • Seatac Marine Services
www.ndtahq.com | 7
I
t was early morning, and I was at the airport anticipating the day. The Cessna 185 stood on the ramp, trussed in its wheel-skis. It held a stance of readiness, as if it wanted to surge forward out of the tie down ropes that bonded it to Earth. I walked over to inspect it for my flight. The sun winked on beads of dew that dotted the windscreen. The airport ramp was quiet. The mute runway beckoned, its length stretched out along the flat tundra, as if it were waiting for me to fly. My preflight was meticulous and leisurely. As I walked around the 185, I felt that it understood my love of the art of flight. As I climbed into the familiar seat I already felt a part of the airplane. It hugged me into its snugness. My David Clark headset hung off of the yoke, silent, bereft of in-
coming radio waves. The instrument needles were poised, ready to point. I cranked the engine, which started immediately, as if eager to fly. As the engine ticked over, warming itself, I got the current weather report for the “North Slope.” Clear everywhere, not a puff of wind. My airplane and I were ready for a journey. As I taxied slowly to the runway, I savored the moment, letting the airplane feel the smooth tarmac. I lined up for takeoff. The runway stripes pointed the way to freedom. I added power and the 185 surged forward in its haste to be in the air. The ground fell away from me as I lifted the exuberant bird from its bond, the Earth. I turned to fly along the shore southwestward, able to see both tundra and Arctic waters. The air was smooth. I had a grandstand view of the stark grandeur below as my steed and I flew in the calm air. Streamlets lined the sere
Flying Amid the Raw Wildness and Delicate Beauty of Alaska By Ellen Paneok
tundra, some of which were occasionally dotted with tiny ponds, making them look like strings of pearls. Sunlight sparkled upon thousands of jeweled lakes and accented the bright blues, greens, and browns of the water. Plains of grasses, tundra mosses, and ever-so-tiny flowerets enriched the Arctic tundra. Across the lakedotted land was an ancient trail, long used by caribou and pounded deep by so many footsteps. A lone caribou stood in the trail; it created the only shadow for miles on unrelieved tundra. There were 88,000 square miles of tundra. This was what lay north of Alaska’s Brooks Range. As I flew over the seas, the water was so smooth, untouched by wind, as if lacquered in so many coats above a clear blue stone. I saw the perfect shadow of my airplane all the way down to the shallow bottom. I watched the beluga whales, which disturbed the bottom mud in their search for fish as they circled the mouths of Arctic rivers, with baby beluga in tight formation.
ers that the mail plane had arrived. Trucks and ATVs streamed onto the ramp as I taxied up and shut down my engine. They were ready to drive me into the village for the celebration, already under way. Hugs were plentiful and smiles were infectious; the traditional hunt had been successful. I felt like I was a part of the community. We rattled along the washboardrutted road to the village center in a venerable rusted-out truck. As I chatted with the driver I looked back at the Cessna sitting on the ramp, already awaiting my return, nose into the wind, as if feeling the currents of the air. The truck trembled to a halt where the whale-hunting captain’s family had set up an area of celebration and sharing. I got ushered into lines where food was being heaped into buckets and bags provided to me. I knew that my arms would be full when I left Wainwright. I wished then that I had something to offer back to them. I wandered around the celebration, feeling as if I really belonged. I found my great uncle and sat by him; his grin grew wider at my ap-
Ellen Evak Paneok, the first Native woman bush pilot beloved by many, passed away on March 2, 2008. Flying was her first love, but she was also a gifted writer. One of only 37 pilots featured in the “Women and Flight” exhibit at the Smithsonian National Air and Space Museum in Washington, DC, Ellen went on to fly over 15,000 hours gaining unique experience
Photo courtesy of the Alaska Aviation Museum
At this time I was flying Cape Smythe Air’s Cessna 185, which was equipped with hydraulic wheel-skis. For several years I was the designated “off airport” pilot. I flew the villagers to their fish camps, which were usually situated along river sand bars and beside Arctic ocean shores. I flew researchers out to barrier islands and landed on the beaches. I used the wheel-skis to land on the pack ice, using the hydraulic hand pump that brought the skis up and down. I also landed on the snow-covered tundra to pick up caribou hunters. The ski wires hummed in tune with the engine as I cruised along the Arctic shores. I was exultant. My airplane was empty because I was flying to Wainwright, 86 miles southwest of Barrow, to celebrate. Members of my distant family had captured a whale, and I was flying over to be with my great uncle, Noah Phillips. The village of Wainwright, population then roughly 700 people, knew that I was en route to be a part of the festivities. That was evident when I flew over the village, which was customary, in order to alert the villag-
and knowledge of high-Arctic flying. After flying for air taxi operations throughout the Bush, she worked for the Federal Aviation Administration as an operations inspector, and then for the Alaska Aviation Safety Foundation as the statewide aviation safety coordinator. Ellen was honored as one of the few pilots authorized to fly the vintage aircraft owned by the Alaska Aviation Heritage Museum. The Museum introduces Alaska aviation history, with a special focus on Alaska Airlines and bush pilots. When you join the NDTA Forum in Anchorage, be sure to visit! In addition to displays and a gift shop, you can enjoy the restoration hanger where vintage aircraft are restored to their former glory.
Shop for your ticket in advance W atch for airline pro m otions Projected fares for July-September, 2012 (are not available at this time)
Lowest Round Trip Airfares* from the Lower 48 to Anchorage, AK (Week of November 24, 2011)
Atlanta Boston Chicago Dallas Denver Detroit Honolulu Houston Kansas City Los Angeles Las Vegas Miami Minneapolis New Orleans New York Orlando Phoenix Portland Salt Lake City San Diego San Francisco Seattle Spokane, WA Washington, DC
$523 $544 $545 $448 $610 $543 $705 $643 $653 $556 $564 $728 $514 $666 $538 $691 $574 $616 $610 $656 $651 $496 $644 $538
Continental Continental US Airways Continental US Airways Continental Alaska Airlines US Airways Continental Delta Air Lines Delta Air Lines United | Continental American Airlines Continental Delta Air Lines US Airways US Airways Alaska Airlines US Airways Alaska Airlines US Airways | Delta Alaska Airlines Continental | Alaska Airlines Delta Air Lines
Lowest Round Trip Airfares* International Origins to Anchorage, AK (Week of November 24, 2011)
Amsterdam Brussels Guam Frankfurt Hong Kong Kuwait London Seoul Tokyo
$1311 Delta Airlines $1354 United $1578 United $1043 KLM Royal Dutch $1573 United Airlines $1585 KLM Royal Dutch $916 KLM Royal Dutch $1515 Delta Air Lines $1633 Multiple Airlines
*pricing does not apply to all seating accommodations
10 |
Defense Transportation Journal
|
December 2011
proach. We sat comfortably, talking little, enjoying each other’s company. A little girl pranced before me, then suddenly stopped in her tracks to stare at me. Her coal-black eyes met mine. Her mother came up behind her, smiling indulgently. She told me her name was Kitty and that she remembered me flying her into During the many magnificent seasons that I flew in the Arctic, I journeyed the northern skies . . . back and forth to the Eskimo villages, many of which sprung from ancient hunting and camping sites and are still in existence. There were still signs of even more prehistoric, long-abandoned village sites that I could see from the air. They were still crumbling away, a long process in the dry Arctic air. Wainwright the year before. The little girl said, “Piiiilot?” Suddenly, I knew why I was here. This is what flying up on the North Slope meant to me. This was what my people, the Inupiat Eskimos, meant to me. The people that I had the privilege to fly back and forth to their home villages; the warmth of my relatives; and the sharing of homes, coffee, and stories. I realized then that I shared a part of myself without even knowing it. During the many magnificent seasons that I flew in the Arctic, I journeyed the northern skies . . . back and forth to the Eskimo villages, many of which sprung from ancient hunting and camping sites and are still in existence. There were still signs of even more prehistoric, long-abandoned village sites that I could see from the air. They were still crumbling away, a long process in the dry Arctic air. My journeys were many. I am glad that this was and is still my home. DTJ
Thank you to the Aircraft Owners and Pilots Association (AOPA) for reprint permission. Ellen Paneok, Alaska aviation pioneer known to chase polar bears off runways in the line of duty, was a proud member of AOPA and contributor to “AOPA Pilot,” Association magazine. NOTE: article was edited from the original to fit format.
Brawn.
Brass.
Different needs. Different solutions. Whether you’re fresh out of boot camp or a high-ranking officer, United offers you a unique range of moving solutions, from do-it-yourself to full-service moving and storage. For professional, efficient and flexible relocation, count on United. To learn more, call United at 800-283-5728 or go to unitedvanlines.com/DTJ. There’s moving. And there’s moving United.
Global Services Affiliate
Part II of a two-part article on challenges facing the DOD. Beginning and introduction appeared in the September 2011 issue of the DTJ.
Managing the DOD for the 21st Century By Mike Young
Phase II Lean Out the New Organizations
Phase II is one that will generate a lot of angst but will cut another $25B from the budget. In this phase, the DOD must address three core elements. The first requirement will be to evaluate all of the existing commands grouped within a SBU and discern if there is any commonality; the logic here is to determine if the commonality will allow the SBU leadership to merge two independent business units into a single business entity. Commonality may take a number of forms; product, location, mission or business, dependency or staff. Here are three examples: Staff: If DOD looked at USD (P) and the Joint Staff (inclusive of the COCOMs) it would be fairly obvious there is a lot of duplication. Merging the two would “flatten” the staff echelons. Location: If DOD were to evaluate the regional COCOMs, especially in light of how DOD has managed the war effort to date, it would appear DOD could consolidate regions. In WW II, the US managed the war effort in three regions. Anything
left of the US was MacArthur’s; right of the US was Eisenhower; in the center was Marshall’s. Interestingly enough a sizeable number of global corporations follow this same delivery model and break the world into three regions: Asia-Pacific (ASIAPAC), Europe, Middle East & Africa (EMEA), and North & South America (AMERICAS). Mission: If DOD were to look at AAFES, NEX, and MCEX, all retail store operations, it would seem their commonality would lend itself to a merger. Overhead would go down, operations costs could be driven downward and profitability would go up without increasing prices. That means more money for Morale, Welfare, & Recreation (MWR). Following that exercise, the next step is to evaluate the new merged entity and determine how many subordinate management echelons are necessary in light of available technology. Here is an example: Management: The Army Materiel Command’s command structure manages its commodity maintenance depots, manufacturing plants, and supply storage cen-
ters. CECOM manages communications & electronics, JMC manages weapons and ammunition, AMCOM manages aviation and missiles, TACOM manages tanks & automotive assets, and NADICK manages troop support assets. Essentially these are fixed plants of which there are 29, give or take a couple. What if they took a page out of the Toyota book and eliminated the intermediate commands altogether? Certainly technology enables AMC to manage 29 independent plants. Envision the AMC operations center with 29 flat screens with streaming information on production, bottlenecks, inventory, inventory in transit, sales orders, reparable carcasses en route for repair, resource issues, backlog, work in progress, customer service centers, etc. All of this information is simply the result of people doing work at the plant. The last aspect of the phase II journey is to look at the remaining management echelons and determine what could be done to reduce the size of the staff. The staff offices of each management echelon duplicate the parent. Again, technology should enable the lower echelons to re-
In WW II, the US managed the war effort in three regions. Anything left of the US was MacArthur’s; right of the US was Eisenhower; in the center was Marshall’s. Interestingly enough a sizeable number of global corporations follow this same delivery model and break the world into three regions: Asia-Pacific (ASIAPAC), Europe, Middle East & Africa (EMEA), and North & South America (AMERICAS).
First published in Small Wars Journal, May, 12, 2011; NDTA is grateful for reprint rights. 12 |
Defense Transportation Journal
|
December 2011
Steaming jungles, blazing deserts, frozen mountaintops. No matter where the dinner order comes from, we’re the reason MREs are never MIA. 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.
U.S. Flag Services
duce their staff complement. And again, here is an example: Virtually all command echelons in the Services have the following staff structure: • Commander • Deputy Commander • Special Staff: PR: CH: SG: JAG: MP: Protocol • Staff: A/G/N/J 1:2:3:4:5:6:7:8 • Operations Center
The Navy’s journey began in 1999. Four separate commands independently started prototypes; each competed and selected SAP. By 2002, they had consumed $1B. The Navy determined they should merge these independent efforts. Over three years they modeled the “as is” state and the “to be” state at a cost of another $1B. In 2005 they began the effort to configure and deploy the first version of the merged ERP for NAVAIR. They subsequently rolled it out to NAVSUP and SPAWAR
dard Army Management Information Systems (STAMIS) for logistics (supply, transportation & maintenance) and selected NG and SAP. In 2005 the Army G8 started GFEBS and solicited bids to replace its two standard financial systems (SOMARDS & STANFINS), again selecting Accenture and SAP. Finally, also in 2005, the Army G4 determined that they needed a hub system (PLM+) to keep everything straight between these independent SAP programs as well as the
What about changing it to this? • • • •
Commander Director of Operations Director of Industrial Support Director of Community & Professional Services • Operations Center In this model, DOD adopts the same model that they use to manage the DOD in each organization. First, DOD eliminates the deputy; the director of operations is the next senior individual in the organization. Second, DOD reduces the number staff front offices from 15 to four in each echelon of command. Third, the operations center is the where everyone works. Phase III Automating the Business: The Promise of Enterprise Resource Planning (ERP)
The DOD estimates it has 5000 legacy business systems in its portfolio, the vast majority of which are custom developed to address a specific niche need. The cost to sustain this in the Army alone is a $20B/year cottage industry for the defense contracting community. Only $7B is visible. The other $13B is buried in the O&M line. The Army has 750 business systems in its IT footprint. Each of the Services and Defense Agencies has been working independently to replace stovepipe legacy applications within confines of their functional domain with modules of a more modern application (ERP). This acquisition strategy was not borne out of stupidity; its genesis lies within the Services’ organizational construct. So when the Clinger – Cohen Act instructed the Services to use computer off the shelf (COTS) products to replace its legacy systems, each stovepipe bought pieces of an integrated product to replace the stovepipe legacy application. 14 |
Defense Transportation Journal
|
They are live, but have not been able to shut down the legacy systems the program was supposed to replace. The Army does not own this SAP instance. They rent it from CSC. CSC filed a $3B lawsuit in 2005 and is in the midst of arbitration with the Army. and are continuing to refine their future deliveries. They have purchased approximately $60M in SAP software to date. The Defense Logistics Agency (DLA) started in 1999 and selected SAP as well. Over the next five years they consumed $1.2B to model the “as is”, the “to be”, customize the product and develop interfaces with legacy systems. They also paid SAP $60M to extend the SAP footprint to support purchasing for the public sector and to extend the SAP Oil & Gas solution to operate in the public domain. Their software purchases with SAP are approximately $30M to date. They are live and continue to extend it to other activities within the agency. In the late nineties, the Army began its business systems modernization effort. In 1999, Army Materiel Command outsourced management of its inventory management (SDS) and depot maintenance legacy systems (CCSS) and hired CSC to modernize and replace these two systems as well as assume the government and support contract sustainment operations for the legacy systems; CSC chose SAP. Over the next 12 years they consumed $1.7B of working capital funds to model the “as is”, the “to be”, customize the product and deploy it. They are live, but have not been able to shut down the legacy systems the program was supposed to replace. The Army does not own this SAP instance. They rent it from CSC. CSC filed a $3B lawsuit in 2005 and is in the midst of arbitration with the Army. Also in 1999, the Army G4 started G-ARMY to replace its field level Stan-
December 2011
remaining legacy systems that needed to either feed or get information to/from these systems. Again, the Army selected CSC and SAP. Each of these programs has individual and unique SAP license and consultant support contracts. That means anything they buy from SAP may only be used for that specific program. To date these programs have consumed $1.8B to model the “as is”, “to be”, customize the product and develop interfaces with legacy systems. G-ARMY is not in production; GFEBS is in the process of being fielded. These three programs have purchased approximately $30M of software from SAP. The Air Force began its business modernization effort in 2005 with ECSS. They selected CSC and a consortium of software led by Oracle. They have consumed $500M to date again to model the “as is” and “to be”. A prototype of a very limited scope exists. The Air Force paid Oracle and its partners $100M for software. The DOD, prior to the formation of the BTA, established Defense Integrated Military Human Resources System a program to modernize payroll. In February 2010, the DOD cancelled the program, after 10 years and $1B. The Business Transformation Agency, in 2006, on behalf of the remaining Defense Agencies selected CSC and Oracle to modernize the remaining agencies business practices. They delivered a financial management solution to the BTA in 2008; but the BTA opted not to extend it any further.
EVERY DAY. EVERY HOUR. EVERY SECOND. There are 24 hours in a day. There are 365 days in a year. This equates to 525,600 minutes, which coincidentally equates to the exact amount of time our team will be ready to meet all of your transportation needs. NO EXCUSES. COYOTE GOVERNMENT SERVICES DIVISION understands the personnel and equipment unique to government operations and treats every shipment with a sense of urgency. Our unprecedented industry software provides real-time visibility, giving overall control to customers.
Veteran Staffed Visibility Control Flexible Delivery
806-490-8804
• Optimization Tools • Uncompromising Support • Financial Backing
WWW.COYOTE.COM
SCACs: CLLQ/GFSQ www.ndtahq.com | 15
What do these programs have in common? • Stove-piped functional domains bought ERP to replace a legacy domain system. • Each program spent years modeling “as is” and the “to be” as required by the DOD 5000 series program development approach. • Each program customized the COTS product to adhere to current domain business practices. • Each program has hundreds of interfaces with legacy systems. The domain owners of the legacy systems did not program funds to change their systems to comply with the stringent edits, the ERP requires. Data latency, data quality, syntax, semantics, and whose data is the correct answer surely are suspect and business process re-engineering is limited to the lowest common denominator . . . the legacy system. • None of the programs possess any organic capability to configure, deploy and sustain their business system of choice. • Financial systems cannot pass an unconstrained audit if the sales, distribution, time keeping, travel, payment, and procurement systems feeding it do not post to a common General Ledger and meet the same level of edits, process rigor, and security to which the financial system must adhere. • The cost of the ERP software selected is trivial in context to the cost to implement IAW DOD 5000. • In any commercial company they all would have been shut down long before they could consume $100M much less $1B. • The return on capital employed is marginal at best. Two other examples with different results
Independent of the national Navy programs above, Navy MWR runs its operations on SAP. Selected SAP in 2000 and began deploying it in 2001. As of today, MWR and its 2800 business users and 16,000 employees use SAP to manage financials (both appropriated funds as well as non-appropriated), contracting and payments in multiple currencies, sales & receivables, Point of sale interface, asset management, general ledger, NAF payroll, treasury, HR personnel administra16 |
Defense Transportation Journal
|
tion, time keeping, travel management, employee self service, facilities management, retail operations which includes supply chain planning, transportation management, warehouse management, inventory management, and business warehouse. And they are able to pass an unconstrained audit every year. Independent of the national Army SAP programs above the Army Armament Research, Development and Engineering Center (ARDEC), and its 5000 employees and customers use SAP to run their business. ARDEC selected SAP in 1999 as well. In 2002 they went live with their financial, budgeting, training, travel, time keeping, HR, project management, credit card management, contract management, Collectively, they realized that if they did not band together as a team and view their respective stovepipes as part of an overall business entity, they most certainly would have failed. and procurement modernization. They have been in production for eight years. Their financials handles all lines of accounting to include cash and working capital funds and manage $1.7B in revenue/year. They balance to the penny and complete year-end close in two days. The stark contrast between their success and the lack of success of the national programs is too vast to ignore. What is/ was the fundamental difference? They each set out to automate their respective business
They each knew a business cannot pass an unconstrained audit if the sales, distribution, inventory storage, time keeping, travel, payment, contract, delivery, and procurement systems feeding it do not post to a common General Ledger and meet the same level of edits, process rigor, and security to which the financial system must adhere. Under the covers at ARDEC: Why were they successful?
ARDEC had an incentive to do something. BRAC 1995 proposed to cut their organization budget by 40% and change their funding profile from a direct appropriation paradigm to a fee for service
December 2011
working capital fund paradigm. The mandate from the ARDEC leadership was to find a way to address the cut without losing an engineering resource. The ARDEC leadership led the effort, which in no small measure was the key to their success; the cultural change was painful and significant. In fact it became personal. If the team charged with the responsibility to deliver did not have leadership top cover, the program would have vanished. The team charged with delivering determined they needed to “trust” the product they selected and implement it as designed. Hence they eliminated years of “as is” and “to be” modeling and collectively agreed they would assume the architecture and the functionality would be the product as available out of the box. If there were differences, the leadership agreed that unless the law dictated the difference, ARDEC would adapt its process to meet the ERP approach. At the end of the day, ARDEC had nominal modifications or extensions to the baseline product. The team at ARDEC asked themselves what they needed to implement so they could run their day-to-day business. By “team”, the Picatinny Arsenal is not one business entity; they are a number of distinct organizations that report up through multiple chains of command. Collectively, they realized that if they did not band together as a team and view their respective stovepipes as part of an overall business entity, they most certainly would have failed. They did not look at system replacements per se; they did the analysis of what they needed to run their business; that analysis led to what systems would be shut down in what order, and what systems they would retain. In the end, they shut down one hundred twenty systems, retained six and interfaced with nine systems. They cut millions of dollars out of their budget and retained its engineering work force. To go live software expenses for 3200 people were $648,000. Implementation costs totaled $4M. Their software to services ratio is .65 to 4. Industry standard is 1 to 3. The national programs are running 1:100. In the meantime we still have all this IT over here
Clearly the DOD and the Services are not going to re-organize overnight; so one
Total end-to-end transportation solutions for your oversized cargoes 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.ndtahq.com | 17 www.FarrellLines.com • Tel. (757) 852-3266
might ask the question: is there anything the DOD could do to get started before the entire DOD is re-organized? The answer would be yes. The DOD should take advantage of the organic SAP talent it has at ARDEC and Navy MWR. Empower them to lead the way. Waive anything and everything that is not public law. Work with Congress to “waive public law” as deemed necessary. This phase done properly will deliver in excess of $50B in year over year budget savings. The DOD needs to understand why the MWR and the ARDEC model worked and leverage it. The DOD modernization strategy is centered on the successful implementation of ERP in the Service and Defense Agencies. This is a good strategy. Even more important is the business model. DOD needs to organize around businesses and eliminate several echelons of staff in the process. The country cannot afford for DOD to remain in the 20th century. Phase IV
Perhaps the greatest and most enduring savings will come out of this phase. As stated in the executive summary, this phase is the most difficult. It is the hardest because it will require both Congress and DOD acknowledge it takes two to tango;
But Congress needs to be on board and supportive. What kinds business processes could be improved? Here’s a short list: • It will eliminate the artificial, congressionally imposed restrictions that encumber day-to-day financial management. • It will eliminate the “colors of money” and the associated time limit to spend the money. • It will require DOD to open its books and enable the Congress to run its own analyses against the same data the DOD uses. It will require DOD and Congress to establish an outside board of directors. • In order to qualify for command it will require each commander become acquisition certified prior to taking command. Both the commander and the acquisition official will sign contracts. • With the exception of GS 15’s and SES’s, it would mandate that the DOD civilian work force become funded through working capital funds. • It would change the way the uniformed military and the civilian workforce operate. The uniformed military is the buyer and the civilian workforce is the seller. • It would change the labor union construct. Anyone who wishes to be a
This phase done properly will deliver in excess of $50B in year over year budget savings. The DOD needs to understand why the MWR and the ARDEC model worked and leverage it. The DOD modernization strategy is centered on the successful implementation of ERP in the Service and Defense Agencies. This is a good strategy. Even more important is the business model. DOD needs to organize around businesses and eliminate several echelons of staff in the process. The country cannot afford for DOD to remain in the 20th century. the DOD did not get here by itself. It is a classic “catch 22”. Why would Congress be willing to repeal anything when the DOD has not demonstrated they can close the deal and provide them the visibility into its business operations? Why would DOD even take the first step if Congress holds them at arm’s length? As in most adversarial relationships, someone has to take the first step. Since Congress as the investor holds the upper hand, DOD will need to bite the bullet and demonstrate to the Congress they can deliver organizational efficiencies and provide the kind of accountability in a pilot. 18 |
Defense Transportation Journal
|
• • • •
GS13 or higher is not covered under the union agreement. It would eliminate the practice of moving every three years to somewhere else to do the same job. It would reduce the size of the executive airlift fleet by 80%. It would significantly reduce the four star billets in each service. It will require compensation plans that incentivize the employees to increase productivity. A portion of the money that is saved each year will fund the employee and executive bonus pool. Bonuses will not be direct funded.
December 2011
• It will require Congress to allow the Services to keep 50% of the revenue from foreign military sales and apply it to a mutually agreed upon set or type of programs. • It will change the working capital fund rules to require 50% down payment upon order and the remainder upon receipt. • It will require the depots to warrant their repairs. • It will require the depots to write off obsolescent parts in stock and apply that write off to their annual Net Operating Result. • It will prohibit end of year buying just for the sake of obligating the money. There won’t be a need since the money won’t go away. • It will change the current acquisition situation where the transaction costs and time needed to complete a transaction to put one person on contract is the same as putting 5000 people on contract. • It will change the way DOD buys things all the way from end items to piece parts and supplies. • It will eliminate artificial manpower protections such as the depot caucus 50/50 law. • It will require Congress and DOD to stand up and say no to the “militaryindustrial complex.” It will not allow Congress to insert pork spending on programs the DOD and its Board of Directors did not request because Congress is on the DOD BODs. For the same reason, it will not allow Congress to stop manpower reductions the DOD and its Board of Directors deem necessary just because the reductions will take jobs from members’ districts. And this is a short list. Congress and DOD need to vet these and many more together; demonstrate cause and effect and collectively face this adversary together. The risk of ignoring the Congressional and DOD relationship is that everything accomplished in Phases one through three could slip back to a previous state. But the potential for additional savings dwarfs the $100B phases 1-3 will achieve. Take it to the bank. Summary
The title of this paper, “The End State” has two meanings. On the one hand it
represents a goal; on the other it is a goal that never ends. The need to morph the organization to respond to threat is no longer a once every ten years gig. It is a daily event now and will eventually become an hourly event, just like it is on the battlefield. The world knows there is no military more able to morph to the conditions of the battlefield, respond accordingly and deliver the desired outcome than the United States military. The rules of war have changed. It is not enough to throw money at the problem and win by brute force logistics; in fact the country cannot afford to fund the Department of Defense at the current
This will be the toughest fight the military has ever engaged because the enemy is the arrogance of the status quo. DTJ
J. Michael “Mike” Young is a logistician with a major in business software that facilitates business operations (logistics). A twenty-year veteran of the US Air Force, Mike has a B.A. in Political Science from the University of Georgia and “knows
enough about object oriented programming, user interface, and database design to keep out of trouble.” The Small Wars Journal, which granted reprint rights to NDTA to publish “The End State,” facilitates the exchange of information among practitioners, thought leaders, and students in order to advance knowledge and capabilities in the field. The term, “Small Wars” suggests “big undertakings, demanding a coordinated effort from a huge community of interest.
The world knows there is no military more able to morph to the conditions of the battlefield, respond accordingly and deliver the desired outcome than the United States military. The rules of war have changed. It is not enough to throw money at the problem and win by brute force logistics; in fact the country cannot afford to fund the Department of Defense at the current levels of the Gross Domestic Product (GDP). levels of the Gross Domestic Product (GDP). The internal businesses supporting the military team in the field are now faced with a crisis they have never before witnessed: what was once a variable is now a constant. Change is constant. The military must now turn its attention to becoming the most efficient consumer of resources without sacrificing capability The support organizations in the Defense Department that provide resources, assets, support and service to the military need to acknowledge they have not kept up with modern organizational constructs and the corresponding improvement in business processes that have appeared over the last thirty years. They need to acknowledge if they were exposed to the same market forces as the private industry and had to compete today, they would not be relevant. The military needs to acknowledge they are fat in staff and lean on boots on ground. They too need to acknowledge, if they had to compete at a price point, they would get their butt kicked. www.ndtahq.com | 19
Global Services Affiliate
Sgt. Augie Harris At Mayflower, we don’t just move possessions. We facilitate seamless relocations all over the world, so you can arrive worry free and ready to serve. Whatever your rank, we offer flexible moving solutions, from full-service to do-it-yourself moving and storage. Executed with a level of care and attention to detail you’d expect from a company that’s been doing it for more than 80 years. Mayflower. Every step of the way. 800-283-5728
20 |
Defense Transportation Journal
mayflower.com/DTJ |
December 2011
Thank you to The Supreme Group, USA for hosting Forum Roundtable Discussions and to Maersk Line, Limited for hosting Forum Professional Sessions.
Remarks from Keynote and Featured Speakers and our Roundtable Teams are abbreviated. Please visit the NDTA Network [www.ndtanetwork.com] for the big picture! You can access complete video capture of remarks online. Log into your Member Account on the NDTA Web [www.ndtahq.com] to find links to slide presentations and background reading for Speaker Presentations and Professional Breakout Sessions offered at the Forum.
>> >>
We would like to express our sincere appreciation to our volunteers, attendees, program participants, exhibitors, and sponsors for helping to make the 65th Annual NDTA Forum and Expo such a success!
the Cha to l
The DTJ Forum Wrap Up is brought to you by the NDTA Forum Press Team: • Kent Gourdin • Mickey Frank • Donna Johnson • Belisa Lea • Mike McVeigh • Christine Pooré • Bob Reilly • Karen Schmitt • Irv Varkonyi The NDTA Press Team invests effort before, during and after the Forum is concluded. They conduct interviews, prepare notes, and help expand our online reading room to provide NDTA members, both those able to attend and those not so lucky, with a first-hand account of the event.
p
mb
ni
x,
Se
te
Plus, we’ve posted hundreds of Forum photos on the NDTA Facebook page
AZ
ge
Risi n
n le
g
Thank You!
The Forum DTJ “Flip Book” is online (See DTJ Archives)
er
10-1
4, 2011
Ph
oe
ONLINE FORUM RESOURCES www.ndtahq.com * Find Session Power Points by logging in to Member Resources * Watch complete videos of Keynotes and Roundtable on the NDTA Network
Material presented in the Forum Section of the DTJ is intended to provide an overview of presentations and is by no means encyclopedic. The information does not necessarily represent the official position of the DOD, corporate member companies, or the Association. We regret any errors or omissions.
www.ndtahq.com | 21
Exhibitors and Sponsors exhibitors AAT Carriers ABF Freight System, Inc ACTCO - Afghan Container Aeros Agility Defense & Government Services Air Compassion for Veterans AIT Worldwide Logistics, Inc. American Gold Star Mothers American Military University American Roll-On Roll-Off Carrier Anchorage CVB APL Atlas Air Worldwide Holdings Avis Budget Group Baggett Transportation Bennett Motor Express, LLC Blackbird Travel Boyle Transportation Cavalier Logistics Central Gulf Lines, Inc. CGI Chapman Freeborn Airchartering Choice Hotels International CitiGroup Colorado Technical University Coyne Airways Limited Coyote Logistics, LLC/ General Freight Services Inc. Crowley Maritime Cubic Global Tracking Solutions Damco DBSchenker Department of Transportation, Maritime Administration DHL DLA Distribution CX Dollar Thrifty Automotive Group
Door to Door Storage Inc Erudite, Inc Estes Forwarding Worldwide, LLC Farrell Lines FedEx Custom Critical FedEx Government Services Final Mile Logistics First Observer/OOIDA General Dynamics GlobalTrak Greatwide Truckload Management Hanjin Intermodal America, Inc. Hapag-Lloyd USA, LLC The Hertz Corporation Hilton Worldwide Horizon Lines, Inc HQ SDDC Hub Group IBM IHG Kalitta Charters Landstar System Inc. LMI Lockheed Martin IS&GS M2 Transport Maersk Line Limited Martlin Distributing Matson Mayflower McCollisters Transportation McLeod Software Mercer Transportation Co., Inc. Mi-Jack Products, Inc. Military Family Readiness Initiative Military Officers Assn. of America Military Sealift Command National Air Cargo
National Railroad Memorial, Inc. Navatech USA NDTA HQ NDTA North Pole Chapter NDTA Valley of the Sun Chapter – PHX Numerex Corp Overwatch, Inc. Pak Shaheen Group Panther Expedited Services, Inc. Passport International, LTD Pilot Freight Services PODS Enterprises Inc. Port of Port Arthur Port of San Diego Portus Priority Solutions International R & R Trucking Raith-CTS Logistics SAIC SkyBitz Southwest Airlines Supreme Group USA LLC Teradata Corp. The Pasha Group The Port of Virginia/ Virginia Port Authority Total Quality Logistics Totem Ocean Trailer Express, Inc. Trailer Transit, Inc U.S. Bank U.S. Transportation Command UniGroup, Inc. United Seamen’s Service United Van Lines Universal Truckload Services UPS YRC Worldwide, Inc.
Fed Ex Gov’t Services Fikes Truck Line Final Mile Logistics FMN Logistics The Hertz Corporation HP Enterprise Services Hyatt Regency Phoenix IBM IHG Landstar Systems, Inc. Lockheed Martin Maersk Line, Limited National Air Cargo Omega World Travel
Pilot Freight Services Port of Port Arthur R&R Trucking Ridgeway International Rock-It Cargo SAIC Southwest Airlines Supreme Group The Pasha Group Transportation Institute Transportation Management Services UPS Vocollect (VISA) YRC Worldwide
sponsors APL Avis Budget Group Baggett Transportation Company Bennett Motor Express, LLC Best Western International Booz Allen Hamilton Boyle Transportation Chalich Trucking Inc. Choice Hotels International DB Schenker Delta Air Lines DHL Extended Stay America Farrell Lines 22 |
Defense Transportation Journal
|
December 2011
professional session summaries | 2011 is NDTA’s “Year of the Military Logistician” Four Professional Sessions presented at the 65th Forum & Expo in Phoenix specifically highlighted the importance of logistics to mission success: “Scorecards and Best Value” Logisticians must determine the most efficient means to provide government efficiencies and still be profitable to providers. "AT21" The VCJCS issued Agile Transportation for the 21st Century. A policy directed to optimize transportation and logistics requirements by matching cargo to modes at lowest cost. “OSD Transportation Policy Vision” Government mandate to reduce costs and meet demands will definitely impact how logisticians approach future missions. “Strategic Trends” The military is taking a hard look at past performance to predict future logistics requirements.
AT21 – Government Expectations Moderator: Corey Kirschner AT21 Program Manager, USTRANSCOM/TCAQ-M
Panelists: Michael Hansen USTRANSCOM/J5/4-L Douglas Luhrsen The MITRE Corporation Mr. Schellinger HQ AMC/A3M, DRC Contract Support Kenneth Young HQ SDDC, AT21 Manager
T
he DOD program known as Agile Transportation for the 21st Century (AT21) is set to release 11 operational capabilities by July 2012 that will individually and collectively improve TRANSCOM and its components’ ability to provide timely, best-value delivery from the port of embarkation (POE) to the port of debarkation (POD). Its primary focus is on enhancing Special Assignment Airlift Mission (SAAM), Time-Phased Force Deployment Data (TPFDD) and sustainment movements, which account for almost 90% of component operating expenses. Optimization will be achieved by promot-
ing maximum use of throughput lift capacity and a holistic viewpoint of requirements and capabilities. This strategy supports the distribution process owner mission assigned to USTRANSCOM in 2004, to maintain readiness and warfighter support. Business process improvement will take center stage, commanding 55% of the AT21 budget. “In order to make the best decisions, people need and deserve the best tools available,” said Corey Kirschner. AT21 will employ an integrated, universal web-based toolset and improved processes to visually identify the best mode, node and routes for SAAM, TPFDD and sustainment movements. Base Realignment and Reduction (BRAC) eliminated billets in TCJ3 early on accelerating the need for AT21 to fulfill efficiencies. This in turn led to the establishment of the Fusion Center, a major business improvement, which went IOC in 2007. The most significant improvement was the consolidated view of customer requirements and fulfillment capacity at a single location. As a result, the SAAM validation process was reduced from 1-6 days to 1-6 hours. From the operational standpoint, AT21 will look at lift optimization processes and data; and employ an intelligent web-form that will tie it all together.
How will AT21 work for users not familiar with cargo movement? AT21 will automatically determine the best way to move cargo. Does AT21 consider commercial systems? Yes. A majority is commercial companies sustain platforms, but AT21 guides the planner to look at a process based on circumstances. It will not reference specific companies. Will AT21 be flexible enough to be effective and not just efficient? It will be both. The key is to meet the warfighter’s requirement and to be as efficient as possible when doing that.
24 |
Defense Transportation Journal
|
December 2011
It is important to note that AT21 is primarily a business process-based solution applying rules formulated according to metric evaluations, enabled by IT capabilities. AT21 involves sets of web-based intuitive and integrated portals whereby data is entered and filtered to establish requirements and subsequently assign lift solutions. AT21 will not only maximize utilization of DOD assets, but also will enhance pallet building, container stuffing and the pairing of airlift and sealift when filing for global route plans. This is smart collaboration, enabled through better integration of book, move, monitor and pay processes and systems. Data quality, leadership buy-in, and work force commitment to making the change is absolutely necessary to make AT-21 work. Education and training will lay the groundwork. Scorecards & Best Value: Commercial Surface, Sealift and Airlift Metrics and Carrier Selection Moderator: VADM Mark Harnitchek, USN Deputy Commander, US TRANSCOM
Panelists: Gail Jorgenson Director of Acquisitions, US TRANSCOM MG Kevin Leonard, USA Commander, SDDC
D
iscussion centered on the metrics used by US TRANSCOM and its components when evaluating support effectiveness to the warfighter and addressed specific topics: Distribution Metrics; Civil Reserve Air Fleet (CRAF);
“Cargo at rest is cargo at risk”
We Specialize in USC-06 Cargo Redeployments from Afghanistan. Innovative Logistics provides comprehensive unit cargo redeployment services to and from Afghanistan. We offer a full range of services that allow us to transport your unit cargo back to home station within the Required Deliver Date with real-time in transit visibility and full accountability. We have a proven record of success redeploying units out of Afghanistan using multi-mode air, land, and ocean freight components under one contracting vehicle. Services
Qualifications
• • • • • • • • •
• • • • • • • • •
Point of Origin On-Site Cargo Load Masters Afghanistan and Pakistan In-Land Trucking Warehousing, Storage and Cargo Consolidation Qualified and Licensed Enhanced Security SDDC Compliant Enhanced ITV Border Crossing and Customs Brokers Wash/Rinse/Load Ocean/Air Freight Ocean Freight Forwarding Air Freight Forwarding
Salang Pass, Afghanistan
Licensed Ocean Freight Forwarder Licensed NVOCC Registered Vendor w/ SDDC and AMC Bonded and Insured DCAA Compliant Cost Accounting System Cleared US Personnel Load Masters 22,000 sq ft Compound in Kabul SDVOSB Strong Past Performance
Torkham Border Crossing
Chaman Border Crossing
Visit us at www.totalscmsolutions.com or call us at p. +1407.539.6146 • f. +1407.628.1508 CAGE Code: 5G7M8
•
Service Disabled Veteran Owned Small Business (SDVOSB)
•
DUNS: 829968614 www.ndtahq.com | 25
Universal Services Contract (USC-6 v. USC-7); Defense Personal Property Program (DP3); and Defense Transportation Coordination (Initiative) (DTC(I)). VADM Harnitchek opened the session with brief descriptions of the challenges currently facing the DOD and the
initiative means we are taking a “Whole Government” approach to find better ways of doing our jobs and to apply progressive discipline for underperformers,” said MG Leonard. Policies, in order of issuance, are currently in place to measure performance
in good condition DTCI, the first bona-fide contract filed under DPO authority, shows continued improvement. It is a good example of progressive improvement if things are not at or above minimum standards. The question and answer period prompted specific remarks
role of US TRANSCOM as Distribution Process Owner (DPO). He noted that metrics should drive behavior and bring improvements to the process, but if not closely monitored, outcomes may be askew since sole responsibility resides with TRANSCOM. Accountability has to be a part of the equation; and, poor results should carry consequences. He asked the panel to consider: • How do we measure leaving on time versus arriving on time? • Metrics indicates that both are important, but which is most critical to the warfighter? • Can we improve one without negatively impacting the other? • How do we define success? • Are we measuring too much, or should we look only at the most critical factors?
and ensure efficiency: Notice of Concern, a “heads up” on poor performance including 30 days grace to correct deficiencies; Letter of Warning, which documents failure to improve within a prescribed time fame; and Non-Use Placement, final action banning further participation. Reports are based on trust and accountability, which allows SDDC to build stronger partnerships with service providers that outperform customers’ needs. Acquisition – USTRANSCOM
Improvements overall at TRANSCOM can be attributed to the ongoing dialog with industry partners in all modes. Actionable information only is considered, and change is brought about not through penalties but through rewards for exceptional performance. Output has become the focal point of contract evaluations following a re-look of measurement requirements.
Military Surface Deployment and Distribution Command (SDDC)
Specific Kudos
Moving forward, SDDC will be tasked to move faster and with a reduced force. Fiscal issues and draw down have brought about significant changes, however DP3 made it through the peak summer season with very positive results. “The Compliance, Safety and Accountability (CSA)
CRAF performance metrics have raised the bar –carriers that consistently met or exceeded performance objectives before have continued to do better USC contracts have delivered better on time performance, better In-Transit Visibility, and better record of cargo delivery
26 |
Defense Transportation Journal
|
December 2011
Lower volume and costs do not necessarily dictate a decrease in opportunity. Drawdown is a reality, but it actually adds volume to drive the push for better buying power. TRANSCOM also considers contract duration; condensed terms are favored. Long-term contracts will require the DOD to refresh current criteria. The warfighter footprint will drive requirements; focus will be on urgency of distribution to the fox hole. Sea/Air is an example of the global mode-neutral model which TRANSCOM hopes to employ to meet this objective. Another example of cost reduction measures includes combining agencies to support operations. FEMA – USAID collaboration to meet urgent need following the earthquake in Haiti is just one example. In this case, costs were lowered and processes were refined. From Management Trainee to the Executive Suite Moderator: VADM Gordon Holder, USN (Ret.) Senior Vice President, Booz Allen Hamilton, Inc.
Panelists: RADM Mark Heinrich USN, SC Commander Navy Supply Systems Command BrigGen Mark Faulkner, USMC Vice Director J4, Joint Staff Bill Kenwell Senior VP at Maersk Lines, Limited Eric Mensing Vice President, APL Limited
G
ordon Holder assembled an inspiring group of seasoned professionals, who did not hold back when sharing recollections of their careers and the challenges they faced. All agreed that Mentors were (and still are) integral to their achievements. Mentors posed the tough questions to make them think; they also set an example that panelists were proud to follow. On many occasions,
the most positive Mentor relationships develop naturally and are not forced. Government/Industry Best Practices for DPS Moderator: Fran Vollaro Senior Vice President, Relocation Services The Pasha Group
Panelists:
Mentors appeared from outside their respective organization, which serves to remind us to remain flexible in our search for role models. You don’t have to limit yourself to a single Mentor, either. There is wisdom in working with different people who have different styles and who are involved in different circumstances. NDTA offers Mentor Programs through local chapters, prompting our members to share lessons learned from their experiences. For example, programs that are overly structured are more difficult to manage. It’s like shopping with a grocery list—if you are searching for specific items only, you will return home empty handed. You will also overlook opportunities that might have proved more fruitful. Finally, spontaneity is risky, but more often than not, it yields the best surprises. If you have questions about the NDTA Mentor program, please contact Mark Victorson at Association Headquarters [703-751-5011].
Eric Mensing
Pick the right company, and go all in! Be ready to go where and when the company needs you. Eric made a long-term commitment to APL years ago; his service to date reaches over 3 decades. Making that decision demonstrates dedication, something that companies look for in leaders. The corporate world values loyalty, trust, integrity, and enthusiasm in addition to profits. And, if you establish your proficiency in several skill sets, it helps your assemble more solid career building blocks. BG Mark Faulkner
Have a bias for ACTION, not process! Making things happen was BG Mark Faulkner’s number one goal as he advanced in his military career. Yet he always made time for those who served under him, playing a leading role at work and in their personal lives. Bill Kenwell
RADM Mark Heinrich
If you don’t like what you see, blame yourself! Mentors provided guidance to RADM Mark Heinrich on a number of themes: command style (General Dail); importance of metrics (Admiral Lippert); and taking care of your people (General Reno). Once you achieve a position of leadership, you should stay focused and maintain that command level of trust.
Love going to work . . . and, don’t be afraid to show it! Bill Kenwell has enjoyed multiple careers with over 40 years of experience in various industries. Along the way, he realized the value of communication and networking, but he also learned the benefits of risk taking. Trust, an admirable trait, is earned so one should work diligently to be trustworthy. Bill also believes that
MSgt Daniel Cormier NCOIC Quality Assurance, JPPSO Colorado Springs TSgt Melissa Curry NCOIC PPPO Peterson, Peterson AFB, CO Cheryl Garcia Regional Vice President, U.S. Bank Reginald Hickmon Branch Chief, Customer Service Division, JPPSO Northeast Barbara Johnson Operations Manager, Crystal Forwarding, Inc. Kevin Myers Director Military Services, Wheaton World Wide Moving Brandon Reagle Operations Manager, Gale Transfer, Inc.
T
his session provided an update of the Outbound/Inbound Defense Personal Property System (DPS) process, including system data entry requirements. Panelists represented each step involved in arranging for a move from a base personal property counseling office to a local moving company. The most emphatic point was that Transportation Service Providers (TSP’s) must be kept in the information loop. System enhancements were designed with this objective in mind. It was very clear that all DPS initiatives implemented thus far place service members, and their families, on center stage. The successful moves that they experience are the result of a total team effort in which they are actively engaged. For NDTA members who are not a part of
www.ndtahq.com | 27
the Household Goods group, the panel shared wisdom that can be applied to all industry segments: • Be pro-active and customer oriented • Knowledge sharing up front precludes problems down the road • Do not promise anything you cannot deliver • Take full advantage of all resources you have available • Continually evaluate your practice and modify accordingly The panel presentation has been recorded previously and is available upon request. Please contact Fran Vollaro, Chair, NDTA Household Goods Sub-Committee [Fran_Vollaro@pashanet.com]
The International Perspective Moderator: Kurt Lengert NDTA European Region President Command DGA, Program Manager HQ EUCOM J4 and HQ USAFE A4/7
Panelists: Stefanie Dobbert Chief, Government and Defense Department, DB Schenker Germany Hans Garcia Chief US AFRICOM Deployment and Distribution OPS Center, Sustainment Branch Furqan Ali Mustafa Director of Business Development, Waterlink Shipping LLC Simonas Satunas Minister Counselor, Deputy Chief of Mission (DCM), Lithuanian Embassy to the USA Craig Strickland Managing Director, Government Sales, UPS
S
ession participants, all experts in managing and enabling commercial and military supply chains in Europe, Africa, Asia and America, shared their perspective on the challenges that the military supply chain faces in supporting UN, NATO or country specific missions. The USAFRICOM area of operations (AOR) is large and complex, consisting of approximately 11.7 million square miles (roughly 3.5 times the size of the US) and covering 54 nations, 800 tribes and 1000 languages. Pivotal to the organization is the concept of the Adaptive Logistics Network or, “Africans helping Africans.”
28 |
Defense Transportation Journal
|
>> Why facilitating a move is SO important . . . SECURITY ALERT Our homes shelter us from the outside world. When we make a move, we are giving up known security to enter the unknown. MEMORY TRIGGERS As we pack up accumulated belongings, we review our lives. The process triggers memories associated with possessions. If we must decide what to keep and what to toss, it represents loss as we leave our past behind. REPROGRAMMING BLUES Living in one place becomes second nature . . . we know where everything is . . . we are comforted by familiar patterns. When we move, we have to reprogram our brains, which adds stress and fatigue. SUPPORT SYSTEM SACRIFICE Our “old” community provided support. We knew the routine of local stores, hospitals, and schools. We had friends. In moving, we have to find replacements that requires effort to make them part of our new lives. Our military members and their families deserve the best support we can give them when transferring to new postings and new places. Let’s ensure a SMOOTH MOVE, so they can move forward with confidence!
Logistics requirements are used as an engagement tool to partner with African counterparts (i.e., cross-training exercises in loading/offloading each other’s nationally assigned aircraft). Recent logistics improvements to Theater support include opening commercial sealift support to SeaBees in Mombassa, getting container booking authority in-theater, establishing overland transportation in Eastern Africa (a modern silk road) and getting a weekly MD11 flight to Djibouti. Support of the Libyan AOR was discussed briefly with the closing comment that Libyan ocean and air ports were not yet open for commercial operations. Lithuania, with an AOR smaller by comparison than that of AFRICOM, is fully engaged as a flexible partner in multimodal, multinational supply chains. It has been an active NATO member since 2004, has a transparent business environment, and boasts the only year round ice free ocean port in the Baltic Sea which has been tested by international partners. It is well positioned to be an ocean and aerial hub for north-south or east-west Balticbased international corridors. Currently, the port is successfully providing container throughput operations in support of the Afghanistan AOR. UPS maintains robust capability and company structure worldwide; it is a key partner to the DOD. The industry and the military share similar challenges when responding to supply chain demands—
December 2011
complex coordination of disparate suppliers, visibility, timely actionable information and customs clearance, to name a few. Public and private sectors need to continue: sharing knowledge; exploring solutions to supply chain challenges; leveraging best practices to optimize process
Tengri News reported on October 28, 2011 that the first container train from China has crossed the Kazakh border on its way to Lithuania. The decision to launch the “Container Train” connecting China and Europe, via the ice-free Baltic seaport in Lithuania Klaipeda, was taken in early October following the 7th sitting of the intergovernmental committee for trade and economic cooperation. A total of 41 containers, originating in Chungking and crossing Kazakhstan into Lithuania, arrived by rail in 10 days as compared to 40 days by sea.
and cost efficiency; and communicating throughout the planning and execution phases of supply chain support. DB Schenker’s “mother” company is the Deutches Bundesbahn and is represented in over 130 countries at more than 2000 locations. The company employs the same IT system worldwide, and likewise trains its users. It is one of few companies to own integrated modes that can serve commer-
HOA’s New Spice Route By Lt. Col. David L. Corrick, US Air Force Reserve Combined Joint Task Force – Horn of Africa, J4 Joint Logistics Operations Center
C
amp Lemonnier, Djibouti: Combined Joint Task Force – Horn of Africa (CJTF-HOA)’s New Spice Route seeks to minimize the command’s reliance on military airlift by developing reliable surface movement options across East Africa. Trucks carrying no-longer-needed equipment started moving in February from Garissa and Manda Bay, Kenya to the Port of Mombasa, then on to Djibouti. A shorter run with fresh, fruits and vegetables departs Kampala, Uganda for a training camp on the way to Entebbe. Next month, line haul begins from Djibouti to Dire Dawa, Ethiopia with construction supplies and provisions. Connections across the Horn of Africa are difficult without the addition of sealift. Still in its nascent stages, the program will add to local economies, while CJTF-HOA promotes stability though its panoply of programs. Commercial trucking has been used sporadically over the years by the DOD in East Africa without a comprehensive plan. Despite these efforts, C-130s and other military airlifters remain the prominent means of shipment to HOA’s dispersed units due to short timelines and a lack of standardized processes for surface movement— something that the Spice Route team including CJTF-HOA, Headquarters US Africa Command, US Army Africa, US Naval Forces Africa, and other DOD partners seeks to change. Led by the CJTF-HOA Logistics Directorate (J4), the New Spice Route matches all DOD shippers with the right commercially contracted capability through the expertise of US Army Africa (USARAF). Based in Vicenza, Italy, the Army’s lead planner is Chris Zahner, who at HOA’s East Africa Coalition Conference recently held in Djibouti said, “Marco Polo wasn’t just an explorer, he was also a logistician developing logistics nodes along the Silk Road. Now let’s do something similar where the Queen of Sheba traveled.” HOA J4’s Gloria Evans turns the concept into a joint plan and process. “As a supported command building partner nation capacity we rely on external sources for movement,” She said, “Working together with our DOD partners to develop better contracts covering East Africa, with seamless connections to sealift, is the way to take pressure off of the C-130 fleet, save Defense dollars and
support local economies.” She notes that even the US-owned firms in the framework use local subcontractors to ship throughout the region. The plan fits squarely within Africa Command’s Adaptive Logistics Network (ALN). While similar to the Central Command (CENTCOM) and State Department coordinated proposal for the Middle East known as the New Silk Road, the New Spice Route emphasizes solutions by both land and sea. As challenging as the Silk Road Asia to Europe route is, CJTFHOA and its partners operate in an area truly forsaken by twentieth century advances in road and rail. “We didn’t even consider trying to line haul direct from Kenya to Djibouti,” said Ms. Evans, “Our move from Garissa took us to the port of Mombasa then on to Djibouti by sea.” US Air Force Master Sergeant Allen Rickles added, “We compared the cost of air shipment and determined that we saved the government $380,000 by moving by surface.” Indeed, the Mombasa to Djibouti sealift mirrored one of the legs of the original Spice Route. Hans Garcia is sustainment branch chief at Africa Command’s Deployment & Distribution Operations Center (ADDOC). “What HOA is doing supports our Theater Distribution Plan,” said Mr. Garcia. “Getting all of DOD on the same Spice Route will build equities and economies of scale that we can all benefit from.” US Navy Lieutenant John Belisle continued. “As Camp Lemonnier’s first Installation Transportation Officer, I’m glad I am part of something innovative. It’s not business as usual here in the Horn of Africa. The Spice Route saves the government money and we’re looking forward to the advanced tracking technologies our civilian partners have to offer—a kind of high tech version of an old idea.” Navy Lieutenant Marcus Thomas of the CJTFHOA J4 talks of other benefits. “As a regional logistics planner, I am excited about increased flexibility that the New Spice Route offers. Sustaining our forward operating locations has been historically challenging, particularly in Ethiopia, where our Navy SEABEEs had no other option but to use their own equipment to receive and transport supplies and materials,” said Lt. Thomas. “By using local commercial truck-
ers who know how to navigate the roads and customs procedures, our guys can focus less on moving their materials around, and more on their tasks of building schools and drilling wells.” Indeed, HOA’s New Spice Route is truly transformational for the US Military, even if it simply builds on existing commercial trade routes. In a time of shrinking budgets, concern about carbon footprints, and ongoing military commitments, every kilometer trucked is a step ahead toward networking East Africa where the Queen of Sheba traveled with her riches more than two thousand years ago—Another pillar of Africa Command’s ALN concept contributing to stability and progress. Lt. Col. David L. Corrick, USAFR, recently completed a nine-month tour establishing and directing CJTF-HOA’s Joint Logistics Operations Center (JLOC). Currently a civilian traffic management specialist at Headquarters, US Africa Command J4 in Stuttgart, Germany; he previously served as EUCOM Deployment and Distribution Operations Center’s first NATO & Coalition Branch Chief (2005-2006) and as the founding Joint Movement Operations Center (JMOC) Chief (2003-2004) at Special Operations Command Europe. A graduate of San Diego State University and Air Command and Staff College, Lt. Col Corrick’s article “American Airlift: Europe’s Strategic Interim Solution” appeared in the July/August 2008 edition of Navy Supply Corps Newsletter.
www.ndtahq.com | 29
cial and military customers. A key difference in supporting those customers is that military movements must clear customs, but not commercial shipments. Thoughts on improving the international supply chain included a continued emphasis on training and granting military shipments similar ability as commercial shipments to clear national barriers. Practical challenges facing contractors and subcontractors dealing with the ground logistics structure in Pakistan were discussed. Primary is pilferage, considered culturally as part of doing business within a 20 square mile area of border crossings. Armed security is not permitted on Pakistani soil, which complicates resolution. Additional challenges include increased insurgency in Peshawar and Quetta provinces, the requirement to use Pakistani vehicles in Pakistan and the shortage of low-beds and trucks for retrograde. Military cargo moves comprise approximately 70% of all operations.
Defense Personal Property Program (DP3): Transition Complete John Johnson Chief, Personal Property Branch, SDDC
C
hanges scheduled to begin next year at TRANSCOM will help make household goods shipments for military members and DOD civilians more efficient and cost-effective. TRANSCOM plans to consolidate 151 personal property shipping offices into 11 regional offices over a 4-year period beginning in 2012 that will save millions of dollars, according to newly appointed TRANSCOM commander General William Fraser III. The changes aim to eliminate process redundancies while reducing overall op30 |
Defense Transportation Journal
|
erating costs and providing standardized, more efficient business practices. Eleven new joint personal property shipping offices will handle behind-thescenes details such as booking shipments and commercial movers. TRANSCOM will establish these offices at: Joint Base Lewis-McChord, WA; Colorado Springs, CO; Chelmsford, MA; Fort Belvoir, VA; San Antonio, TX; Jacksonville, FL; and San Diego, CA. Joint offices will stand up at: Pearl Harbor, HI; Yokosuka, Japan; Seoul, South Korea; and Grafenwoehr, Germany to manage OCONUS moves. Since local personal property processing offices will continue to provide premove counseling services and inspect shipments to verify quality customer service, the consolidation is expected to be transparent to military members and families. A best value approach, focused on performance quality, will provide full replacement for damages. More than 90% of all household good shipments now are booked through this system, with active duty, reserve-component and civilian members taking advantage of its online self-counseling services. The system saved TRANSCOM about $153 million in personal property movement costs during FY2011 using more competitive rates and best-value scoring. General Fraser has vowed to continue improving business processes for household goods shipping and services. (Source: “Consolidation Streamlines Household Moves, Saves Money;” American Forces Press Service; Oct. 26, 2011)
December 2011
OSD Transportation Policy Vision and Discussion Moderator: Don Stanton Deputy Assistant Secretary of Defense for Transportation Policy, Office of the Secretary of Defense
Panelists: BrigGen Mark Faulkner,USMC Vice Director J4, Joint Staff Gail Jorgenson Director of Acquisition, US Transportation Command Lisa Roberts, Deputy DASD (Transportation Policy), OASD (Logistics & Materiel Readiness)
O
SD Transportation Policy is a collaborator with other offices throughout the DOD and the Federal Government, including the State Department, and covers both “Hard Power” missions through war and “Soft Power” missions through humanitarian aid. Policy endorsing greater use of Civil Reserve Air Fleet (CRAF) and Voluntary Intermodal Sealift Agreement (VISA) programs to move goods and people reinforces remarks delivered by Deputy Secretary of Defense Dr. Ashton Carter on July 28, 2011. The J4, Director of Logistics for the Joint Chiefs, insures that Combatant Commands have the logistics capabilities they need to succeed in their mission. The current “optempo” [“Operations Tempo,” or measuring pace in terms of equipment usage] with multiple actions requiring rapid responses is the template for the future. Joint operations will become even more important as the norm in DOD
logistics and will hinge on the concept of the “Logistics Efficiency Umbrella,” which combines all services and 3PL contracts. Difficult issues remain with certain items: fuel surcharges; security escort vehicles; personal property movements. US TRANSCOM is also focused on efficiency and productivity, aiming to
Leveraging Social Media Moderator: Kirstin Knott Director, FedEx Government Services (DOD)
Panelists: John DeFoor Joint Concept Division, Joint and Coalition Warfighting/JS J7 Brian W. Fields, NMCEM, PCP-I VP & COO, Homeland Security & Emergency Management Division, B-Sting Ventures, LLC
T
his session was an NDTA first! Brian Fields delivered his presentation via Skype, which dovetailed nicely with Chapter Workshop discussions that took place earlier in the Forum. NDTA members have expressed great interest in launching a Virtual Chapter, and real time dialogue between chapters will surely bring significant benefits. Chapters with fewer resources could stream programs or speakers scheduled at other monthly Chapter meetings.
groom a more informed acquisition workforce, increase oversight of partnership with the Defense Contract Management Agency (DCMA) and employ affordability metrics through KPP’s (Key Performance Parameters). Helping customers to better define requirements, the reduction of large value contract volume to a more manageable amount, continuation of innovative programs, like AT21, and reliance on contracts that are mode neutral transportation or based on performance/best value are also on TRANSCOM’s radar. Other topics concerning TRANSCOM included: cyber security threats; managing humanitarian logistics in collaboration with Federal agencies; and resolving FAR based contracting and current acquisition regulations. All speakers were confident that the DOD would not allow capability degradation even with future budget cuts. The discussion was lively, and well presented.
Session take-a-ways
• Social Media offers both positive and negative experiences • It can be best used to target specific capabilities • Liabilities come along with Tweeting/ Texting; sometimes with serious consequences • A single click shares good and bad news immediately with a myriad of followers • Trust must be earned from the Social Media community if we expect them
• • • •
to come to our defense or support our objectives Social Media is revolutionary AND evolutionary Your organizational blog strategy should tell the whole story Initiatives, product changes, and updates can be shared in the moment Social Media drives performance differences without changing the process
The power and the potential of Social Media are boundless, but we must learn to use tools responsibly and with care. First, ask whether the information for sharing is accurate and/or useful. Also, barriers and firewalls that prevent exchange with DOD platforms have to be resolved. In Question and Answer, NDTA industry members shared the efficiencies of connecting via Social Media: Surface Carriers can save money on fuel; load dispatch can be optimized; transport routes can by-pass highway troubles. Airlines can expedite passenger check-in and improve customer service. Companies in general have improved employee relations by enabling access to pay statements and personnel data. One message in particular was made clear. We have changed the way people do business by generating immediate, direct and candid conversations between customers and companies that can both serve or sever the relationship. A thorough knowledge of social media is necessary for any business trying to compete in this new real time world.
NDTA Network Last year, NDTA launched the NDTA Network [http://www.ndtanetwork.com/], which broadcasts videos of Forum Speakers and Roundtables for members unable to attend the event. This tool represents one step taken towards establishing a Virtual Chapter, a request that comes from our membership. The NDTA LinkedIn group discussion is another means to participate with transportation and logistics colleagues in other chapters.
www.ndtahq.com | 31
In the AOR with our Young Leaders Bridging the Operational Environment from a Strategic Perspective Moderator: Jason Trubenbach Department of the Army, HQ, G-4
Panelists: Major Joseph Borovicka, USA Commander, 688th Trans Detachment (RPOE) Whitney Clayton Transportation Officer, USARMY Corps of Engineers Eric Ebeling Vice President & General Manager American Roll-on Roll-off Carrier (ARC) CPT Carlos Sanford, USA Aide-de-Camp to DCG at SDDC, SDDC HQ, Scott AFB
T
Strategic Trends and Future Lift Requirements (Surface, Air, Sea) Moderator: BG (P) Michael Lally, USA Director of Operations and Plans, J-3, USTRANSCOM
Panelists: Eric Mensing VP, GovernmentTrade/President & CEO APL Limited/APL Maritime Tim Shaw Managing Director, Government Sales, UPS Adam Yearwood Assistant for Sealift and Mobility (Transportation Policy), Office of the Secretary of Defense
T
he intent of this panel was to look into the future, anywhere from two to five years down the road, and discuss efficiencies, R&D initiatives, finetuning multimodal operations, and the continuous effort to achieve the right mix of commercial and military lift. If there was a thread that ran through this discussion it was that DOD cargo volumes will continue to fall as the drawdown proceeds in the Middle East. Adam Yearwood set the tone by expressing concern for both CRAF (Civil Reserve Air Fleet) and VISA (Voluntary Intermodal Sealift Agreement) national security programs as military cargo volumes available for commercial carriers decline. He said that the Under Secretary of Defense for Acquisition, Technology and Logistics, signed a memo in July 2011, emphasizing the importance of promoting the use of CRAF and VISA carriers within DOD supply contracts where the vendor arranges significant transportation
32 |
Defense Transportation Journal
|
outside the United States. He suggested collaborating with other federal agencies to increase the amount of cargo preference traffic from offices other than the DOD and DOA. Eric Mensing reported that APL has 18 US-Flag ships, 9 of which are enrolled in the VISA program. The DOD is their single largest customer, providing 3% of their business. The company is looking for additional ways to lower costs such as slow-steaming (17-18 knots versus 23-24 knots). The reality is that 90% of the military cargo moving into OIF/OEF goes commercial vice military ships, so as that amount drops, so too will US-Flag carrier revenue. In time that will likely reduce the number of US-Flag vessels without MSP who can profitably operate. He went on to say that some of the new business being developed, such as Sea/Air, will allow carriers to stay on the route much longer than otherwise. Tim Shaw voiced the same concerns from the airlift side. While lauding the success of multi-modal movements using both water and air carriers, he expressed concerns about how the CRAF carriers will be protected as DOD airlift needs decline.
December 2011
he panel provided a broad overview of their involvement in the DTS mission, highlighting specific experiences and challenges they have faced. Experience gained as an intern in the US Army helped Whitney Clayton achieve her current position with the Corps of Engineers, Middle East District Headquarters in Winchester, VA. As Transportation Officer, she is responsible for shipping items to Afghanistan. Currently, DHL and FedEx are contracted to the US Army Corps of Engineers (USACE); cargo arrives in 3-4 days. “But, if they can’t [see it], you have to answer lots of questions. A good ITV system and tracking mechanism on one network would help.” Eric Ebeling discussed the partnership between the US-flag fleet shipping industry and the Department of Defense, and mentioned four items specifically that will be of greatest benefit going forward: • Transparency – Openness concerning data and requirements that is provided as early as possible will yield the best possible service. • Mutual Obligations – Responsibility on both sides helps protect US assets as a base provider, and ensures that service will be there for the next time it’s needed. • Strong Leadership – Regular and executive working groups and carrier meetings will continue to be critical in
Q&A |
With Whitney Clayton, Eric Ebeling, Captain Carlos Sanford, and Major Joseph Borovicka
What is the biggest challenge you experienced? Getting equipment and supplies over to the AOR faster than we get the people there. [Whitney Clayton] As a US-Flag Fleet, our greatest challenge is making sure the right policy makers know who we are, what we do, and why it is important to maintain our capability. They need to know that reliability of the Merchant Marine is very important to our customer and us. [Eric Ebeling] Sharing knowledge with the commander on the ground who often has different priorities. Then, making sure we do the job the right way. [Captain Carlos Sanford] How to do a lot with a little…especially when you belong to a very small unit. [Major Joseph Borovicka]
What keeps you satisfied in your work place? I enjoy assisting and building relationships. [Captain Carlos Sanford] Building a team on the ground . . . it is like an unrehearsed ballet. [Major Joseph Borovicka]
If you get to sit down with the next Chief of Transportation, how would you recommend the Unit Movement Officer (UMO) do business in the Army today? There are not enough transporters to go around when every Company/Battalion is mandated to have a UMO. Selecting an S4 in that slot at Battalion level may help. [Captain Carlos Sanford]
Is industry prepared to go door to door? Writing the exact requirements into the contract will help. Certain responsibilities belong to the unit and should remain with the unit. The unit knows what it wants. Industry will work and meet any requirements, but it may come at a premium. [Eric Ebeling]
Do you feel confident when you go into a unit with all the expectations and cuts in training? We had 14 months of training in the intern program and we did a lot of on the job training. However, we did not receive any type of management training. One of the biggest complaints is most of the interns who go to SDDC for training are assigned to other organizations they are not familiar with. [Whitney Clayton]
More senior officers know enough to ask the right questions. Junior people have less know how. The intern program is a good, and knowledge is gained by being out in the field. [Major Joseph Borovicka]
What recommendation do you have for DOD partnership with Industry? Transparency is very important, and requirements must be clear. Also, bring industry in the loop as soon as feasible and it will help a great deal. [Eric Ebeling] Provide DOD with real time data . . . whatever is needed to get the information out. This would be a win-win situation. [Captain Carlos Sanford] From a humanitarian or disaster relief contingency the stand point, just sending stuff does not work. Cargo documentation and ITV are very important. It does not do any good to have something and not know what it is or where it is suppose to go. It takes a long time to figure that out. [Major Joseph Borovicka] I would suggest that industry members do a Google search on the DOD organization to learn about the command before asking business questions. We are approached with a lot of questions in areas that we are not involved in. [Whitney Clayton]
In transportation you need expertise. Most transportation officers are answering to O-6’s on a lot of questions so the right training is definitely needed. [Captain Carlos Sanford]
www.ndtahq.com | 33
fostering relationship building. • Maintain Value – As we draw down from Iraq and Afghanistan, this proven business model will ensure that partnerships between commercial industry and the DOD will remain strong. In a prior position, Captain Carlos Sanford was responsible for making sure equipment was ready for deployment and was moved from point A to point B. Visibility, whether port-to-port or doorto-door, is always a critical component however it may require some rethinking in certain operational settings according to Captain Sanford. “Commander’s want to know where their stuff is . . . physically seeing the cargo really helps and gives them a ‘warm ‘n fuzzy,’” he said. “But, if they can’t [see it], you have to answer lots of questions. A good ITV system and tracking mechanism on one network would help.” Major Borovicka spoke about the Joint Force Task Port Opening (JTF) he worked on. Opening a port presents unique problems since Maximum-on-Ground (MOG) can occur very quickly. [MOG refers to the
number of vehicles, vessels or aircraft that can remain on/in a dedicated space at any one time] Various factors must be considered to establish MOG assessment. Cargo is a good example. Aircraft may not be able to land if cargo spills on to the tarmac, and ships cannot dock if another until another off loads. Cargo visibility goes out the window when things pile up. “Why does this happen,” asked Major Borovicka. “It’s
hard to get logistics on the ground quickly. Leadership does not take risks in certain environments because of safety and then cargo builds up. Once this happens, it’s too late to recover.” While not always the answer, JTF can get an operation set-up in an about a day . . . from port operations to clearing cargo. There are only 3 JTF worldwide; it is very much an expeditionary operation,” Major Borovicka added.
“Logistics demands precision—
where technology and information converge to drive the global economy.” Jennifer Batchelor | Faculty, School of Management With more than 18 years of transportation and logistics management experience, Batchelor represents the caliber of AMU faculty and its commitment to blending academic quality with real-world application. Batchelor serves as vice president of an award-winning firm and is passionate about teaching students the cutting-edge technology and methods that are driving industry today.
Learn More at www.amuonline.com/dtj
Art & Humanities | Business | Education | Management | Public Safety & Health | Science & Technology | Security & Global Studies
34 |
Defense Transportation Journal
|
December 2011
keynote & guest Speakers Keynote Speaker | Opening Ceremony “Logistics . . . the line between order and disorder”
Scott Davis Chairman & CEO UPS
“W
here trade crosses borders, troops do not,” said Scott Davis, Chairman and CEO of UPS, a top Fortune 500 company which promotes global trade in more than 220 countries and territories around the world. However, serious economic, social and political challenges threaten the status quo, which prompted Mr. Davis, our Forum Keynote Speaker, to share these thoughts at the Opening Ceremony: 1. We must continue improving logistics systems and set realistic export goals 2. We must remember that energy security contributes to our economic well being, and 3. Protectionism hurts national interests Despite public rhetoric, Davis indicated that the United States is even more dependent on foreign oil than it was 30 years ago. By comparison, UPS has focused on energy conservation and has achieved a 3% fuel decrease in 2010 from 2009; the company is also experimenting with alternate fuel vehicles including liquefied natural gas, which is cleaner than fossil fuel. “Our country is AWOL on breaking down trade barriers,” Davis continued. The US has negotiated 17 free trade
agreements but none in the last four years (Editor’s Note: Congress approved free trade agreements Oct.12, 2011 with South Korea, Colombia and Panama, ending the four-year gap). Such agreements, which create tens of thousands of new jobs, have been stuck in the mood of protectionist politics. Exports need to expand beyond only contributing 11% of our GDP. Davis saw continued economic problems in Europe because of their sovereign debt crisis, with several nations facing potential default. In fact, the developing world fares better in economic growth. A question came from the audience concerning failing infrastructure in the US, which impedes the nation’s logistics capabilities. Davis stated that old technology hampers aviation and inadequate capacity limits productivity of seaports and highways. “We don’t have the answers yet on overcoming political obstacles but we will work together to find solutions,” Davis said. Davis thanked the military for their dedication, and praised TRANSCOM’s outstanding logistics lead. FEATURED Speaker | Opening Ceremony “Logistics is the teeth, not the jaw”
Alan Estevez Assistant Secretary of Defense (Logistics & Materiel Readiness)
A
lan Estevez, who “goes back a long way” at NDTA, helped set the stage on Opening Day for fol-
lowing Forum discussions. He shared the “good, bad and ugly” of the defense logistics business, including recollections of time spent at Camp Leatherneck, a 1,600 acre Marine Corps base in Helmand Province, Afghanistan that is home to the 1st Marine Logistics Group and other forward operating units.
“Logistics is the teeth, not the jaw,” said Estevez. It is the strength that the warfighter needs to defeat the enemy. He praised logisticians as “warriors” who, like combat soldiers, fight daily to keep supplies coming. “We are providing outstanding support in Iraq and Afghanistan...that’s the good news,” he said. He also noted that we are in a good position to manage drawdown, or alter the flow if other decisions are made. Lines of communication into Pakistan and along the Northern Distribution Network (NDN) are working well and delivery of new equipment, like the Joint Recovery and Distribution System (JRaDS) and the Aerostat, are other positives. Estevez summarized the “bad” as issues that the DOD is working to solve. For example: cargo shows up without advance notice, which impairs dispersal. Local pilferage and criminal networks, our host nation trucking contract, energy consumption, and the fact that retrograde materiel is piling up are additional negatives.
www.ndtahq.com | 35
Industry and military alike are familiar with the “ugly,” or the DOD budget outlook. Estevez prefers to see this as an opportunity; one that prompts us to explore solutions that just might yield even greater benefits aside from financial requirements. We’ll have to examine our shortfalls, question our inventory, and shed capabilities. Just as importantly, we’ll need help from industry… we’ll need to consolidate operations. In closing, Alan Estevez suggested that we remember the good that we’ve accomplished, but warned that the ugly will become uglier if we don’t do better. Military Unit Awards Ceremony
the presentations, Admiral Harnitchek introduced Mrs. Alan Chandler, Gold Star Mother from Phoenix, who lost her son in the service of our country. Mrs. Chandler, proud of her son’s contribution to our Nation in three tours of duty as Commander, SF ODA 334 (HALO Team in Afghanistan, expressed her family’s thanks to our active and retired forces for their service. Her presence on the stage was a powerful reminder of those who have made the ultimate sacrifice. Let us never forget them.
Awards Presenter VADM Mark D. Harnitchek, Deputy Commander, USTRANSCOM
Keynote SpeakeR “My job is all about saving lives . . . I must be nimble and accountable.”
Special Guest Jonnie Chandler Gold Star Mother (Phoenix)
A
dmiral Harnitchek opened the ceremony that acknowledges outstanding military units. He spoke about the importance of the logistics enterprise to combatant commanders who must cope with surges, drawdown and on-going support of people and equipment in the field. He noted that the plethora of natural disasters this year have strained defense logistics resources as have US military efforts in support of lesser contingencies in Libya, Yemen and Bahrain. Admiral Harnitchek thanked all who serve and noted that the Military Unit Awards about to be presented were a great opportunity to recognize logistics excellence across all branches. Before making 36 |
Defense Transportation Journal
|
Pat Morello Purchasing Director, Navistar Defense
N
avistar Defense executive Pat Morello manages his day-to-day activities at works as if someone’s life depends on it. Military members deployed in Afghanistan would agree that that he does just that . . . Morello is accountable for all procurement of Navistar’s vehicle line-up and, in fact, actually helped develop the MRAP (Mine Resistant Ambush Protected vehicles), which has saved countless lives in Afghanistan. The company has been in the business of trucking solutions for over 100 years
December 2011
Modern Day Marine Every year Navistar participates in “Modern Day Marine,” an event where survivors of IED attacks meet with vehicle management teams to provide valuable feedback on operation in the field. The event, scheduled for Sept. 25-27, 2012 in Quantico, Virginia, will coincide with the NDTA Forum.
providing tactical wheeled vehicles for the Department of Defense. It follows a straightforward premise: Be Affordable and Provide Right Value. Not so long ago, cost was secondary when customers voiced their requests. Today, costs are carefully considered due to budgetary constraint and are leveraged corporate acquisition guidelines placed costs secondary to customer need came first and logistics costs were secondary. Today, budgets are severely reduced. Overall expenditure (from start to finish) is analyzed and costs are leveraged. Navistar continues to react quickly to its customers, anticipating needs and requirements. Building relationships with right suppliers, incorporating logistics into the total cost of operations, and applying strategic sourcing to all facets are some of the practices currently in place. The bottom line, according to Morello, is the entire team must all be in it for the log haul…and that includes suppliers. Supply chain operational success originates with collaboration among suppliers. “Adapt the enterprise and its suppliers to achieve the best scale of operations to meet customer needs and prepare for future solutions,” he said.
Keynote SpeakeR “With airlift, we deliver hope”
General Raymond Johns, USAF Commander, Air Mobility Command
studied by AMC such as steerable parachutes and smart bundles which allow airdropped supplies to be guided to pinpoint landings. Similarly, airships are being looked at as an attractive airlift option that is faster than sealift but cheaper than air. One of the big issues he cited was managing buoyancy, but said the possibilities with this new mode of freight transportation are very enticing. This presentation was a terrific update on what AMC is doing today and planning to do in the future.
G
eneral Johns presented a fascinating look at Air Mobility Command (AMC), both today and tomorrow. He noted that the Command had spent $2.5 billion this year moving passengers and cargo around the world in support of various DOD requirements. AMC can reach anywhere in the world in 18 hours, a truly remarkable achievement. General Johns spent some time discussing the merits of utilizing an air/sea combination to move MRAPs into the Mideast. He noted that the former can be used to move initial shipments directly to the front lines while the ocean pipeline is filling with vehicles. Once that occurs, airlift can be switched to shuttle equipment from the in-theater seaport of debarkation to the battlefield. Not only is the total cost cheaper, but the service is actually better because each aircraft can replace fuel with payload since the flying distance is shorter. An especially fascinating part of this presentation was General Johns’ detailing the advances made in aeromedical evacuation. By raising the qualifications of medical personal assigned to the frontline, AMC has been able to essentially push out the aeromedical evacuation system into the battlefield. As a result, the survivability rate for injured warfighters is now 98% once they are in the system and General Johns stated they are now working on the other 2%. He ended his presentation by talking about some of the new technology being
Keynote SpeakeR “First and foremost we will always, always deliver.”
General Duncan McNabb, USAF Commander, USTRANSCOM
I
n his remarks on Forum closing day, Air Force Gen. Duncan J. McNabb underscored the importance of military-commercial partnerships saying,
“There’s nothing like it . . . [we] couldn’t do our job without you.” General McNabb, now the former commander of the US Transportation Command at Scott Air Force Base in Illinois, thanked commercial industry for its contributions to Department of Defense logistics, highlighting industry involvement in creating a strong global transportation system. The general said that the past decade has challenged the American military and its logistics experts, and noted that government and industry working together ensure efficient and effective support for US warfighters. “You are always ready and eager to tackle any challenge with ingenuity; keeping supply lines open to support our troops,” he said. NDTA membership understands the power of industry in all modes, including multi-modal operations, is great for the nation, the warfighter and the taxpayer. And, partnering and the efficiencies it brings helps the DOD avoid higher costs. When asked about the most significant threat he foresees, General McNabb remarked government and industry are vulnerable to cyber threats because of the public nature of the transportation business.
Air Mobility Command 25th Anniversary NDTA celebrated its 65th Forum Anniversary in Phoenix. The Air Mobility Command Museum also marks a milestone this year. Congratulations! Air Mobility Command Museum | 1986- 2011 25th Anniversary Where do old airplanes go? The lucky ones go to the Air Mobility Command Museum— the only museum dedicated to airlift and air refueling history! During WWII, the 4146 Base Unit was involved in secret rocket development at what was then known as Dover Army Airfield. The building complex where these military secret operations took place was Hangar 1301. From the 1950s to the 1970s, various fighter squadrons called the hangar home. In the 1990s after restoration and placement on the National Register of Historic Places, Hangar 1301 was given new life as the home of the Air Mobility Command Museum.
www.ndtahq.com | 37
Keynote SpeakeR “Lessons from life about surviving and thriving with radical change.”
Eric Haseltine, PhD President & Managing Director Haseltine Partners, LLC
D
r. Eric Haseltine holds a PhD in Physiological Psychology from Indiana University and has done post-doctoral work in neuroscience at the Vanderbilt University School of Medicine. He is the former Director of Research at the National Security Agency, and former Associate Director for Science and Technology for the Director of National Intelligence. Before entering government service in 2001, he was Executive Vice President of Walt Disney Imagineering in charge of all R&D for the Walt Disney Company. If you are left wondering how all this relates, consider the fact that Disney’s fantasy
worlds have a surprising amount in common with the ideal universe envisioned by the intelligence community where environments are carefully controlled and people are closely observed. Overall, Dr. Haseltine’s expertise lends itself well to “rising to the challenge” through his reflections on change. Throughout his career, Dr. Haseltine has been helping organizations harvest for the future, noting that big opportunities (and answers) often exist right in front of us yet they are often overlooked because our brain naturally filters out information that it doesn’t expect or doesn’t want. Change is constant. We cannot avoid it. However, it differs in degree. Biology, ac-
cording to Haseltine, reveals clues that can help us interpret, and respond to, even the most monumental changes brought on by drastic events. The Department of Defense is anticipating significant change. Dr. Haseltine suggests that our military not only make room for the change, but that they make necessary preparations to change before they are forced to do so. When asked how to go about making changes once a strategy is worked out, he recommended, “You can’t do it incrementally . . . and if the leader doesn’t endorse it, it won’t work.” A leadership role in this scenario will require investment, persuasiveness, and most of all, courage.
roundtables Standing Watch with the Stars Moderator: VADM Gordon Holder, USN (Ret.) Senior VP, Booz Allen Hamilton
Panelists: RADM Mark H. Buzby, USN Commander, MSC BG (P) Lynn A. Collyar, USA Director, Logistics Operations, DLA MG Kevin A. Leonard, USA Commanding General, SDDC
T
he theme of NDTA’s 65th Forum reinforced the Roundtable Team, a distinguished line up of military leaders who rise to the challenge of urgent missions every day amid economic constraints, hostile conditions and natural disasters. “They do this through unity, through team effort with industry part-
38 |
Defense Transportation Journal
|
ners,” said Gordon Holder. Collaboration is sure to be the mantra as the Department of Defense moves towards the next generation of challenges. Efficiency is one means to meet those challenges. “But just being efficient isn’t enough. You have to be effective or no one will come to you,” said BG Lynn Collyar, Director of Logistics Operations, DLA. The agency has announced its specific focus for achieving effectiveness in three areas: Warfighter Support Enhancement; Workforce Development; and Stewardship Excellence, which Collyar explained would become the priority. The agency will also streamline operations through synergies. In one example, DLA is partnering with TRANSCOM and the Military Services to develop the Strategic Network Optimization which will capitalize on the number, location and function
December 2011
SDDC is the executive agent for the DOD’s Personal Property Program and continues to reengineer the way DOD selects, manages and works with transportation service providers that move household goods and vehicles.
of distribution and disposition facilities, in turn reducing operating costs and providing agility to support customers during peacetime and contingency operations. “When SDDC thinks about rising to the challenge,” said MG Kevin Leon-
Admiral Buzby is most concerned about the Cyber challenge. “It’s a critical issue . . . tapping right into our links . . . entering the battle without firing a shot. It will take industry partnership to get around that,” he said. The audience was invited to ask questions. Admiral Holder took the lead and posed the difficult questions on behalf of industry ranging from contract solicitation to transparency and trust. Dialogue was candid and responses were up front. Sizzling. From the Farm to NASCAR Panelists: Ted Rybeck Chairman & CEO Benchmarking Partners Chair, NDTA Security Best Practices Committee Admiral Buzby shared news of USNS Spearhead, the first of MSC’s Spearhead-class Joint High Speed Vessel (JHSV) christened just days after his appearance in Phoenix. Nicknamed the “Pick Up Truck” of the Sea, Spearhead and the other 22 planned JHSV’s are “modular” vehicles that can be quickly modified to haul a variety of payloads. (Photo Courtesy Austal USA)
ard, “there are lots of great ideas!” They hinge on four pivotal questions: Are we doing the right things? Are we doing things right? What are we missing? And, What’s next? The key is implementation. SDDC met this year’s peak summer season in grand style supporting 500,000 household moves and transport of 73,000 POVs. We are still at war, and southwest Asia continues to be a hot spot. But according to Leonard, the future is all about change and “we have to change who we are and what we’re doing,” he said. Humanitarian assistance and disaster relief make up a large portion of business at Military Sealift Command. Recalling the effort following Haiti’s earthquake, Admiral Mark Buzby noted that 21 ships showed up quickly along with 4 ships from the Ready Reserve Force that were activated in just five days notice. Crews brought heavy lift, medical assist, salvage and resources to reclaim the damaged
2012 DIRECTOR’S GUIDANCE WARFIGHTERFOCUSED, GLOBALLY RESPONSIVE, FISCALLY RESPONSIBLE SUPPLY CHAIN LEADERSHIP
Next year, DLA celebrates 50 Years of Combat Logistics Excellence. The 2012 Director’s Guidance including initiatives is available to the public. See NDTA’s BizBriefs [ndtahq.com/BizBriefs.htm] for an announcement and download.
port. But as MSC draws down and the command’s composition changes, Buzby admits it will take “smart balancing” of the fleet to remain efficient.
Carole Soule New Hampshire Farmer & Entrepreneur Miles Smith Farm
S
chools, colleges, professional groups, humanitarian relief organizations and companies have employed a variety of Internet-based strategies and “smart tools” to attract a following. Some even collaborate with the most unlikely partners and in ways not possible before in order to expand their audience. This pragmatic approach provided the framework for this Roundtable, which was delivered from the perspective of small business. The fact that Ted Rybeck relayed presentation material to the audience via his smart phone made the point even more meaningful. Social Media is popular across a broad spectrum, although there is a distinct difference among users. For example, eighteen to 24 year olds are “uncommonly skilled” when compared to their more senior counterparts in school or in the office. Facebook, Texting, and Tweets are second nature to them. However, when applied with a focused strategy that enables tagging, downloads or geospatial referencing, these appli-
www.ndtahq.com | 39
Ushahidi Blog
Photo courtesy of New Hampshire Motor Speedway/HHP Images.
cations can produce remarkable results in the realm of business ventures. Such is the case for NASCAR (New Hampshire Motor Speedway) and Miles Smith Farm located nearby in Loudon, New Hampshire. They have joined forces to compete with more traditional venues, like ESPN, and consequently have engaged a much broader, and unexpected demographic than either had witnessed previously. This roundtable discussion raised several points, including comments from young
40 |
Defense Transportation Journal
|
December 2011
Ushahidi, a blog developed to map outbreaks of violence in Kenya after the post-election fallout in 2008, has led to a whole suite of downloadable free ware (Ushahidi; Swift River; CrowdMapping) that assembles realtime input, like geospatial data, text, audio and imaging, into visual reports that can disseminated to online communities. All data can be tagged and traced; and information sources can be identified as “trusted.� Ushahidi has proven its value in humanitarian action following uprisings. Its capabilities for managing disasters or generating interest in products and services are being explored.
soldiers in the audience who recognized the advantages of Social Media but felt constrained within the DOD arena. This could be due in part to military discomfort over confidentiality and security, which is prerequisite to their environment. DTJ
NDTA – UPS Awards Photo Album 65th Annual NDTA Forum & Expo
Phoenix, Arizona
NDTA National Transportation Award
Mr. Robert K. Coretz
National Defense Leadership Award
Gen Duncan J. McNabb, USAF
Chairman & Co-Founder Omni Air International
Presented by Ray Ebeling
President, CEO morten beyer & agnew Presented by Ray Ebeling
Mr. Alan Estevez, SES
Commander, US Transportation Command
Assistant Secretary of Defense (L&MR)
Presented by Ray Ebeling
Presented by Ray Ebeling
NDTA President’s Special Achievement Award
NDTA President’s Award
Mr. Robert Agnew
NDTA Distinguished Government Service Award
Ms. Judy Silcox
Key Account Director – Government Americas Sales InterContinental Hotels Group
Colonel Thomas Sweeney, USA (Ret.) Central Pennsylvania Chapter
Presented by Ray Ebeling
The Ties that Bind | Distributed at the 2011 NDTA Forum in Phoenix To commemorate our 65th Anniversary, we have assembled a snapshot of Association, Industry and Forum highlights over the past 15 years following the publication of our 50th Anniversary Yearbook in 1994.
Let us know if you would like a copy!
n for Global The Associatio Transportation Logistics and 2011
k
ry �earboo
�nniversa
www.ndtahq.com | 41
NDTA – UPS Awards Photo Album Young Executive of the Year Award civilian
Mr. Eric Ebeling
NDTA International Chapter of the Year Awards
NDTA International A-35 Chapter of the Year Awards
category I
category II
Rheinland-Pfalz Chapter
Washington, DC, Chapter
Accepted by SMSgt Jamie Vanoss and MSgt Larry Little
Presented by Ray Ebeling
Presented by Ray Ebeling
Rheinland-Pfalz Chapter
Accepted by SSgt Justin Stevens Presented by Ray Ebeling
military category II
category III
Tampa Bay Chapter
San Antonio Chapter
Presented by Ray Ebeling
Presented by Ray Ebeling
category III
category III
TSgt Daisy M. Galan, USAF Rheinland-Pfalz Chapter
Presented by Ray Ebeling
Accepted by Ben Cross
Washington, DC, Chapter
Accepted by COL Rod Mallette, USA (Ret.) Presented by Ray Ebeling
42 |
Defense Transportation Journal
|
December 2011
Accepted by Bill Fisher
Washington, DC, Chapter
Accepted by Jason Trubenbach and Whitney Clayton Presented by Ray Ebeling
NDTA – UPS Awards Photo Album NDTA Distinguished Service Awards Lt Col Cliff Altizer, USAF San Antonio Chapter
Colonel Norbert Grabowski Membership Recruiting Awards category I
category II
Rheinland-Pfalz Chapter
San Antonio Chapter
Presented by Ray Ebeling
Presented by Ray Ebeling
category III
A-35 Recruiter
Washington, DC, Chapter
Mr. Joe Escalera
Presented by Ray Ebeling
Presented by Ray Ebeling
outstanding Recruiter
outstanding Recruiter
Ms. Penny Cacoulidis
SSgt Justin Stevens
Ms. Donna Biffar
Scott-St. Louis Chapter
TSgt Daniel A. Briscoe, USAF Scott-St. Louis
Ms. Angela M. Burrill Charleston Chapter
Ms. Tara Feilmeier-Novak Scott-St. Louis Chapter
Mr. Norm Galer
Scott-St. Louis Chapter
Mrs. Kristian Howe Charleston Chapter
Lt Col Donna Johnson, USAF (Ret.) Scott-St. Louis Chapter
Mr. Paul Kozak
Scott-St. Louis Chapter
Mr. Frank Langbein
Accepted by TSgt Collin Skinner
Accepted by Bill Fisher
European Region
COL Rod Mallette, USA (Ret.) Washington, DC
Mr. Chuck Muscio North Pole Chapter
Capt James Naber, USN (Ret.) Central Pennsylvania Chapter
Ms. Michelle Quidachay Micronesia Chapter
Mr. Bob Sherrill
North Pole Chapter
Mr. Scott Stewart
JSS Productions, Inc.
COL Richard B. Thompson, USA (Ret.) Scott-St. Louis Chapter
Ms. Jennifer L. Tubb
Scott-St. Louis Chapter
Mr. Marty Usher Fern Expo
SMSgt Jamie L. Vanoss Rheinland-Pfalz Chapter
NDTA Corporate Distinguished Service Awards APL, Limited American Shipping & Logistics Group Atlas Air Worldwide, Inc. Avis Budget Group Bennett Motor Express Boyle Transportation CSX Transportation Cubic Global Tracking Solutions DB Schenker DHL FedEx Government Services The Hertz Corporation IBM InterContinental Hotels Group (IHG) Landstar System Lockheed Martin Maersk Line, Limited National Air Cargo Norfolk Southern Corporation Panther Expedited Services, Inc. The Pasha Group Raith-CTS Logistics R & R Trucking, Inc. SAIC SkyBitz, Inc. Supreme Group, USA Transportation Institute UPS YRC Worldwide
Accepted by Tom Fortunato
Cape Fear Chapter Accepted by Don Parker
Presented by Ray Ebeling
Regimental Chapter
Rheinland-Pfalz Chapter
Presented by Ray Ebeling
www.ndtahq.com | 43
NDTA – UPS Awards Photo Album Military Unit Awards |
Presented by Vice Admiral Mark Harnitchek, USN, Deputy Commander, USTRANSCOM
Army—Active Component
Army—National Guard
Army—Reserve Component
Fusion Company, 2d Battalion (Airborne), 503d Infantry Regiment, Vicenza, Italy accepted by MAJ Matthew A. Sweeney, USA
1451st Transportation Company, 630th Combat Sustainment Support Battalion, Boone, North Carolina accepted by SFC Holly J. Mullis, ARNG
418th Transportation Detachment (TTP) 316th Quartermaster Battalion Fort Sill, Oklahoma accepted by SGT Kyle Dodson, USAR
escorted by BG Paul C. Hurley, Jr., USA
escorted by BG Paul C. Hurley, Jr., USA
Marine Corps—Active Component
Marine Corps—Reserve Component
Navy—Active Component
MAGTF Materiel Distribution Center (MMDC) 1st Supply Battalion, Combat Logistics Regiment 15, Camp Pendleton, California accepted by LtCol Michael J. Murchison, USMC
3rd Battalion 24th Marine Regiment Bridgeton, Missouri accepted by LtCol Jeffrey Knudson, USMCR
NAVSUP Fleet Logistics Center Sigonella US Naval Supply Systems Command Sigonella, Italy accepted by CDR Toby Swain, USN
escorted by BG Paul C. Hurley, Jr., USA
escorted by Colonel Christian Haliday, USMC
Navy—Reserve Component
Fleet Logistics Support Squadron, Six Four (VR-64), Fleet Logistics Support Wing, Joint Base MDL, New Jersey accepted by Commander Brad Dunham, USNR
escorted by Colonel Christian Haliday, USMC
escorted by Rear Admiral Mark F. Heinrich, SC, USN
Air Force—Active Component
Air Force—Reserve Component
721st Aerial Port Squadron, 521st Air Mobility Operations Wing, Ramstein Air Base, Germany accepted by Lt Col Michael Erhardt, USAF
56th Aerial Port Squadron, 452d Air Mobility Wing, March Air Reserve Base, California accepted by Chief Master Sergeant James L. Wood, USAFR
escorted by Rear Admiral Mark F. Heinrich, SC, USN
44 |
Defense Transportation Journal
escorted by Maj. Gen. Samuel D. Cox
|
December 2011
escorted by Maj. Gen. Samuel D. Cox
NDTA – UPS Awards Photo Album Coast Guard
SDDC Excellence in Traffic Management Awards
Presented by BG Kevin Leonard, USA and Command Sergeant Major James E. Riddick, USA
Army
Navy
SFC Chad Parkening Installation Transportation Office, Directorate of Logistics, Fort Hood, TX
Robert Cordero-Morales Fleet and Industrial Supply Center, Sigonella-Rota, Spain
Marine Corps
Air Force
Coast Guard
GYSGT Dwight Hilton USMC Combat Service Support Schools, Camp LeJeune, NC
SMSGT Charles Nimmo 27th Special Operations Logistics Readiness Squadron, Cannon AFB, NM
PO(YN3) Jillian Oliveira Personnel Services and Support Command Ketchikan, Ketchikan, AK
DLA
AAFES
DCMA
Helene Tunney Defense Logistics Agency Troop Support, Philadelphia, PA
Donna Jones AAFES Dan Daniel Distribution Center, Newport News, VA
Audrey Kucway DCMA Transportation North Central Team, Detroit, MI
US Coast Guard Marine Safety Unit Port Arthur US Coast Guard Sector Houston-Galveston Port Arthur, Texas accepted by LCDR Christy Rutherford, USCG escorted by Captain James H. Whitehead, USCG
www.ndtahq.com | 45
2011 Forum Attendee Official Survey Results | Thank you for your feedback! Through your comments, we are able to make adjustments to the program and other events and provide the best value to our members. What is your primary reason for attending the Forum? Networking, 52%; Professional Sessions, 24% Which TWO networking opportunities provide the greatest benefit to you? Expo Hall, 38%; AM/PM Networking Breaks, 22% and in third place was Dinner Reception on Tuesday evening at 11% How would you rate NDTA’s Pre-Forum/ Forum information sharing? Most areas received a combined rating of Very Good to Excellent of 80% or higher: Individual Online Registration, 89%; Exhibitor/Sponsor Online Registration, 91%: Exhibitor Online Service Manual, 86%: Social Media-Twitter/Facebook, 42% (58% were not “following” NDTA on social media): Pre-Forum E-Mail Blasts, 83%: Forum Welcome Gram, 80%: Forum Daily Newspaper, 82%: DTJ, 78% Which TWO 2011 Speakers did you find most informative? The top three were: General Johns, 26%: General McNabb, 21%: and Mr. Scott Davis, 16%
Which TWO NDTA Forum Professional Sessions did you find most valuable? The top three were: Strategic Trends and Future Lift Requirements (Surface, Air, Sea), 25%: Scorecards & Best Value—Commercial Surface, Sealift and Airlift Metrics and Carrier Selection, 17%: and DPS, 11% Complete video presentations of Forum Speaker Remarks, Roundtable Discussions, and the Military Unit Awards Ceremony are available at the NDTA Network online. Have you visited www.ndtanetwork.com ? Yes, 27%; Yes and shared with friends/colleagues, 15%: No, 58% (most responded they were not aware of the site or had not had the time to visit the site) After attending the Forum, are you more aware of the Logistics capabilities of commercial transportation providers? Yes, 87%: No, 13% Which Exhibitors provided you with thought leadership to help address your needs across the Supply Chain? There was a wide variety of responses to this question—no clear trends
Which Exhibitors were the best examples of communicating their value proposition to Defense Contractors? As with question number 8 there was a wide variety of responses with no clear trends List the THREE company brands you remember best as a result of their sponsorship during the Forum. The three brands mentioned most often were UPS, FedEx and Maersk; however, a wide variety of brands was listed Do you plan to attend the 66th Annual NDTA Forum, September 22-26, 2012 in Anchorage, Alaska? Yes as an individual, exhibitor or sponsor, 74.7%: No as an individual, exhibitor or sponsor, 25.3%. Respondents planning not to attend cited air fare costs. Surprisingly, air travel to Anchorage costs less or nearly equal to many previous Forum locations. Specific Comments: We received lots of favorable remarks, and some constructive comments, too. Areas that require some attention include: our banquet menu; more modal focused breakout sessions; increased involvement of A-35 members, the future or the organization. We got the message . . . we will work to ensure improvements for the 2012 Forum in Anchorage, Alaska!
Visit the NDTA web site at ndtahq.com/forum.htm for more input And, please send us your suggestions at any time!
ndta instructor of the year
Army Reserve
Army National Guard
SSG Dale Warfield
CW3 Rodney Russell
Army Active Duty
SSG Christopher Hunt
2nd Brigade (TC), 94th Division (FS) Fort Eustis, VA
JFHQ-LA, J4, (Camp Beauregard) Pineville, LA
US Army Transportation School Fort Lee, VA
Army Active Civilian
Navy
Air Force
Photo Unavailable
Mr. Daniel Ostermann
Mr. James Peasley
Army Logistics University Fort Lee, VA
46 |
Defense Transportation Journal
Navy Supply Corps School Newport, Rhode Island
|
December 2011
MSgt Lauro A. Cruz, USAF
PACAF Transportation Training Center Kadena Air Base, Okinawa, Japan
Strong Leadership is Needed We Can Have it Both Ways!
Lee Jackson, Logistics Management Institute (LMI)
A
s I have previously stated, the importance of providing a funding mechanism to support our nation’s deteriorating infrastructure is a critical element in making the US globally competitive. A direct result of increased funding and support for transportation infrastructure projects will be increased job growth and opportunities. Conversely, the President’s Supercommittee on deficit reduction is faced with making disproportionate across-theboard cuts to federal programs, starting with significant military spending cuts. Such military cuts could adversely impact economic growth and lead to job losses. President Obama recently proposed a $50 billion plan as an initial first step toward a six-year reauthorization of transportation projects, which calls for building, fixing or maintaining thousands of miles of roads, rail lines and airport runways, along with installing a new air navigation system to reduce travel delays. In addition to the President’s transportation infrastructure plan, President Obama’s jobs plan includes $10 billion dollars in seed money for establishing a national infrastructure bank, designed to I think we can all agree that the creation of jobs is critical in our current economic environment and that creation of jobs designed to address our Nation’s deteriorating infrastructure is the right thing to do. fund our Nation’s deteriorating infrastructure. House Transportation & Infrastructure Committee Chairman John Mica (RFla). opposes this idea. Congressman Mica states that such a program is unnecessary as FHWA already has numerous funding mechanisms already in place, such as Transportation infrastructure Finance and Investment Act (TIFIA) and the Railroad Rehabilitation and Improvement Financing (RRIF) Program. Further, thirty three states already have state infrastructure
banks in place. “Current law allows a state to use their Federal-aid funding to capitalize a State Infrastructure Bank and provide loans and loan guarantees to appropriate transportation projects that the state deems most important.1
past and will in the future be a key element in making the United States an economic superpower. Continuing to support and maintain a world class military is required to support our Nation’s present and future security needs. With strong leadership, both of these objectives can be met. DTJ
Strong Leadership is Needed!
Where does this leave us? I think we can all agree that the creation of jobs is critical in our current economic environment and that creation of jobs designed to address our Nation’s deteriorating infrastructure is the right thing to do. In addition, I think we all agree that our national defense and protection of our homeland security should also be on our list of priorities. Nevertheless, under the President’s so-called Supercommittee, members are being asked to decide whether their attention should be focused on job creation or should their focus be on our Nation’s security and our national defense? With that said, I would ask you to think about what would be your choice? Clearly a case can be made for both programs. Our Nation’s leaders and decision makers must weigh-in on to what degree should they support job creation and to what degree should they support national defense. Clearly a case can be made for both. The $649.2 billion fiscal year 2012 defense spending bill . . . cuts $8 billion from Obama’s request, setting a baseline for future years that’s lower than in the past.“2 This position is supported by the current Secretary of Defense Leon Panetta. Secretary Panetta was quoted in the referenced Politico article “We must preserve the excellence and superiority of our military while looking for ways to identify savings. While tough budget choices will need to be made, I do not believe in the false choice between fiscal discipline and a strong national defense. We will all work together to achieve both.” This is a Win-Win!
In this writer’s opinion, were in a win-win situation. Building a world class transportation system and infrastructure has in the
1 Quote from Press Release: National Infrastructure Bank Would Create More Red Tape & Federal Bureaucracy, October 12, 2011, Transportation and Infrastructure Committee, Chairman John L. Mica 2 Quote - 2011, Politico article, GOP split over defense spending.
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 2011. 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, Karen Schmitt. 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 9,220; paid circulation by mail, 8,258; sales through dealers, carrier or other means, 383; free distribution by mail or other means, 466; total distribution, 9,107; copies not distributed, 113. Percent paid and/or requested circulation: 95%. Karen Schmitt, Managing Editor.
www.ndtahq.com | 47
Chapter Spotlight 2011 Chapter President & Member Workshop Jeff Campbell Chapter Liaison
F
ollowing are notes from topics covered at the 2011 NDTA Chapter & Member Workshop held during the Forum. By Lt Col Donna Johnson, USAF (Ret.), NDTA Chair, Chapter Support & Membership Development; status updates from NDTA HQ in parenthesis. NDTA HQs Update – NDTA VP, Mem-
bership, Mark Victorson, gave an overall NDTA update on behalf of NDTA President LTG Ken Wykle, USA (Ret.), including possible date changes for the annual recruiting drive, and requested input on the “two-fer” concept. Many members thought the two-fer program was a good idea (It’s back!). Awards Program – Southeastern Re-
gion President Dale Cozart went over the Awards Program rewrite. Member suggestions included: font & size standardization, input limits depending on award, and an identified acronym list (Rewrite will be ready in time for 2012 Awards). Tax Exempt Status – Mark reviewed an
information paper recently reviewed by a tax attorney. It is up to individual chapters to determine if it is in their best interest to become tax-exempt. Members shared that for smaller chapters it sometimes isn’t necessary, but for larger chapters and those hosting golf tournaments, it’s vital so contributors can write off their sponsorship (The paper is available online in the Chapter Toolkit). Virtual Chapter – NDTA Executive Assistant Sharon Lo passed out an information paper on the idea of a Virtual NDTA Chapter to grow NDTA’s online presence and give more opportunities to At-Large Members who aren’t near an active NDTA Chapter (AMU students are brainstorming and have submitted several ideas, send your feedback to Sharon by the end of November).
48 |
Defense Transportation Journal
|
Nearly 40 Members, representing two-thirds of NDTA’s Chapter leaders, were on hand for the annual Chapter Workshop to exchange ideas and best practices that will help keep NDTA Strong at the local level. Photo Courtesy Jeff Campbell.
Education & Training – Washing-
ton, DC Chapter Board Member Irvin Varkonyi briefed the group on education ideas and training suggestions, including student chapters, scholarship ideas, and tying education credit and training into Forum offerings (A-35ers are breathing new life into student chapters at the University of Maryland, and the California and Maine Maritime Academies. We will continue to look into certification programs for a Forum Training Day). Chapter Presidents’ Alaska Forum promotion ideas: • Travel cost analysis (stop high-cost perception) • Visit Joint Base Elmendorf-Richardson to tie in work environment • Combine other canceled conferences/ training into Forum to draw people and organizations • Outdoor tours i.e. chartered fishing • Chapter Presidents would like to see more A-35 involvement/offerings • Enhanced communications to see what speakers & activities other chapters are having • Expanded speakers bureau, with tips on attracting speakers to chapter meeting and increasing member participation when they come DTJ
December 2011
In the two months leading up to the 2011 Forum, we started listing the “Top 65 Reasons to Attend the 65th Annual NDTA Forum & Expo” on the NDTA Facebook Wall. At the NDTA Booth in the Logistics & Transportation Expo at the Phoenix Convention Center during the 65th Annual NDTA Forum, energetic volunteers Tampa Bay Chapter President Ben Cross and NDTA Chair, Membership & Chapter Support, Donna Johnson, spoke with Expo Attendees about their favorite reasons to go to the 2011 Forum. These are the Top Ten: 1 Networking (Business Opportunities) 2 Supporting NDTA 3 Networking (Socially) 4 Keeping current 5 Marketing our solutions 6 Networking (for post-military service opportunities) 7 Professional Development & Training 8 Accepting Award 9 Meeting our Customers/Vendors q Volunteering • •
•
• • • • •
• • • • •
• •
•
To support NDTA for the 21st year. (Belisa Lee, Washington, DC Chapter) To Network, see old friends, and develop new ones. (Colt Meyer, San Francisco Bay Area Chapter) I won a free trip to Phoenix! (TSgt Justin Stevens, Rheinland-Pfalz Chapter Member who earned an Honorable Mention in the “NDTA Needs YOU!” Recruiting Contest) Get your TDY while you can! (Joe Escalera, Regimental Chapter) See what’s changed since I retired. (Mickey Frank, Washington, DC Chapter) Beer drinking! (Rheinland-Pfalz Chapter) Find out what policy changes are coming up in the future. (Rosemarie Shell, At Large) Answering COL Edwards’ call with Chapter Support. (Jim Burkhardt, Valley of the Sun Chapter) Network, promote our solutions, and learn! (Sunny Taylor, Washington, DC Chapter) To run & adopt ducks. (Lori Leffler, Washington, DC Chapter) Staying active. (Caron Martin, Valley of the Sun Chapter) This is my 26th Forum! (Mike McVeigh, Valley of the Sun Chapter) To become as current as possible with what is going on in the Industry. (Howdy Race, Regimental Chapter) Maintaining relationships. (Aaron Todd, Puget Sound Chapter) TRANSCOM Networking & learning about what’s going on in CENTCOM. (Darren Baker, Tampa Bay Chapter) I can use the contacts I make here [in Phoenix] back in my job. (Hans Garcia, Rheinland-Pfalz Chapter
First Sergeant (1SG)
(Collar & Cap)
First Sergeant (Senior Master Sergeant)
First Sergea (1stSg
Command (Collar & First Sergeant Sergeant Cap) Sergeant Major Major (Chief Master (SgtMaj) (Collar & First (CSM) First Sergeant)
Non-Commissioned Officers— Backbone of the Military Sergeant (1SG) Valuable Component of the NDTA COL Denny Edwards, USA (Ret.)
A
t the NDTA Forum in Phoenix, SDDC’s Command Sergeant Major James Riddick noted that as a collective body of military experience, today’s Non Commissioned Officers represent a relatively untapped source of logistics, transportation, and supply chain expertise for NDTA. Senior military agree that Command Sergeants Majors and unit First Sergeants are some of the most valuable assets in any organization. Whether they are Truck Masters, or Load Masters; dispatchers or deployment experts NCO’s are at the center of the action. NDTA needs their expertise, and is actively formulating ways to increase NCO presence at every level from Chapter to National Headquarters. The Command Sergeants Major at USTRANSCOM, SDDC, DLA, as well as the Command Chief Master Sergeant of AMC, the Master Chief Petty Officers at MSC, Naval Supply Systems Command, Marine and Coast Guard will be invited to suggest ideas and programs to make NDTA attractive to more NCO’s throughout all of the Services. Elsewhere in this DTJ, you will read about efforts to attract more junior NCO’s through the establishment of an A-35 Vice President position for junior NCO affairs. NCO input will be solicited for all aspects of the Association: organi-
NCO’s Make It Happen! The theme of greater NCO involvement in NDTA is exemplified by the timely assistance and expertise that two Army Command Sergeants Major are providing for Welcome Home campaigns in December. Two Senior NCOs have nearly singlehandedly organized a plan in Kuwait to enlist the help of all the areas senior NCO’s to distribute free rental car vouchers and hotel room points, to troops returning from Iraq, Afghanistan and Kuwait.
Cap)
First Sergeant Sergeant NCO Insignia (Senior (1stSgt) Master E-9 from the Air Force Sergeant) (Command Chief Master Sergeant) – CCMSgt
Sergeant
Master Chief Chief Master
Maste
zational structure, major committees, adMajor Petty Officer Sergeant Gunne Command ministrative procedures, Forum planning (SGM) (MCPO) (CMSgt) Sergea E-9 from the Marine Corps Chief Master and execution, and chapter operations. (MGySg (Master Gunnery Sergeant) Sergeant NDTA President, Ken Wykle has already – MGySgt Pay reached out toSp CSM Riddick at SDDC Gd for ideas and proposals. Some of the ideas that have been suggested for initial consideration include: E-9 Chart from the Army (Command US Military Rank and Insignia - Enlisted Sergeant Master Chief Chief Master Sergeant Major) –Master CSM E-9 • Addition of NCO liaison positions Major at Petty Officer Sergeant Gunnery the Vice President level (SGM) (MCPO) (CMSgt) Sergeant http://usmilitary.about.com/od/theorderlyroom/l/blenlrank.htm • Assigning Senior NCOs specific posi(MGySgt) tion and responsibility in NDTA Re- Chief Chief Master Sgt. Major Sgt. Major Master from the Navy (Senior gions and Chapters of the Petty Officer E-8 Sergeant of of the Chief Petty Officer) – SCPO Command (Collar & First Sergea • Reviewing and revisingArmy NDTA’s of memthe Navy the Air Force Marine Sergeant Cap) Sergeant Major bership policies to make in(SMA) NCO(MCPON) (CMAF) Corps Major (Chief Master (SgtMa (SgtMajMC) volvement more attractive (CSM) Sergeant) • Increasing NCO exposure in the DTJ and NDTAGram E-9 • Targeting Association marketing ef• Considering the formation of an forts more directly to NCO interests NDTA Senior NCO Advisory Council http://usmilitary.about.com/od/theorderlyroom/l/blenlrank.htm • Including senior NCOs in Forum Plan• Expanding NDTA recruiting efforts at ning and Forum Site Selection ComNCO military training and supply mittees; and increasing opportunities schools, transportation units such as for Forum participation as speakers or Ft. Lee, and elsewhere Command (Collar & panelists. [Editor’s Note: This year, CSM Chief Master Cap) Tomas Hawkins (TRANSCOM) officiatIf members have additional ideas; or if you Sergeant ed as Forum Co-Moderator in Phoenix] Sp Pay are an NCO member of NDTA, we would like • Creating an A-35 Vice President forGd to hear from you. Contact Denny Edwards at Note: In the Army, there are two types of E-4s: corporals and specialists. While bo NCO Activities denny@ndtahq.com or 703-751-5011. Let’s receive the same pay, a coroporal is a noncommissioned officer and a specialist is • Implementing awards and recognition make increased NCO involvement in NDTA E-4 is normally designated an NCO (corporal) if they are a team or section leader. initiatives directed to the Corps amoungst a top priority in the year ahead! Corporals are NCO more common the Combat Arms, butDTJ many Combat Supp
MOS's (jobs) may have them. In the Army, promotion to E-4 comes automatically commander's recommendation) at 26 months Time-in-Service. That means that m peopleHotels that enlist for 3-5 would spend an awful long time as a PFC. That's no contacts, and expertise resident Hertz and Choice provided the yearspersonal to look forward to, most people are notCorps. ready That for NCO with in our Senior NCO sameresponsibility exvouchers, but the big challenge wasbesides, the couple of fairly yearsdistributed in service. Hence, the Specialist rank. It's a throw back fro perience could and should beactually put to work logistics of getting them Sgt. Major Master Chief Chief Master Sgt. Ma in NDTA, and the to solving complex supplyinto of not service so distance past. Up midof80's ranksOfficer were divided 2 separate to all the returning personnel. It until the the Petty Sergeant of the chainranks. and distribution didn’t take longstructures. to activate the “Senior E1-3's were the Private There the Specialist ranks (Special Army of were thechallenges. Navy theNCO’s Air Force Marin represent a large untapped source(CMAF) of loNCO Network”through in country. Relying on Specialist 7).their These were soldiers that were specialists in thier field (hence (SMA) (MCPON) Corps gistics knowledge thatauthority. should beThere brought strong contactsname). with each other develThey were not NCO's and didn't have NCO were the NCO r (SgtMajM to the table.These Their are greater oped over their(Corporal careers, they quickly met through Sergeant First Class). the involvement leaders.
in our association is long overdue. What and developed a voucher distribution plan better place to start, than with increased for NDTA. responsibility and recognition within Although this example is more of a NDTA. Our association will be stronger by humanitarianhttp://usmilitary.about.com/od/theorderlyroom/l/blenlrank.htm project, it illustrates an imfar if we take this important step now. portant point—the wealth of information,
(Collar & www.ndtahq.com | Cap)
49
HONOR ROLL
OF
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 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. Corporate Flight Management
50 |
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 KU Transportation Research Institute Kuehne + Nagel, Inc. Labelmaster Software
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 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
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 2011
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 Associate + PLUS Choice Hotels International + PLUS CEVA Logistics + PLUS Cubic Global Tracking Solutions, Inc. + PLUS FedEx + PLUS Final Mile Logistics + PLUS Global Aviation Holdings Inc. + 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 Science Applications International Corp. (SAIC) + PLUS Supreme Group USA, LLC + PLUS Titan Services + PLUS Universal Truckload Services, Inc. + PLUS UPS + PLUS 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. 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 | 51
government NEWS TRANSCOM News
By Christine Pesout, US Transportation Command Public Affairs
U
S Air Force Gen. William M. Fraser III conducted his first commander’s call on October 18th as the new leader of the USTRANSCOM. During his one-hour talk in a packed base theater, Fraser shared his priorities for the organization. Fraser set the tone for his style of leadership and promised fidelity through additional written direction at a later date. His top priorities include: Focus on the warfighter and winning the fight; building partnerships; improving effectiveness and finding efficiencies; and, preparing to meet future demands. He summed up his priorities in a one-word charge: “Lead!” Fraser stressed the importance of partnership—both among co-workers and with commercial and other organizations—to success. He encouraged his staff to get to know and look out for one another. He promoted listening to various opinions and then working together once decisions are made. Fraser noted that USTRANSCOM “led the way” on many initiatives from which he benefited during his time in the field. He sees this transition as an opportunity
In a Strange Land
“TRANSCOM has earned a tremendous reputation of getting the job done . . . Every individual in this command has the opportunity to make a real difference. It’s not the planes, it’s not the trains, the ships or the trucks that make things happen . . . it is the people.” —General William Fraser, III, USAF; October 14, 2011; Change of Command Ceremony
to ask questions, especially about processes that have been on “auto-pilot rather than pulled from a collaborative environment.” Fraser challenged everyone to make decisions and avoid keeping secrets. He encouraged staff to be “solutionoriented”. He wants to hear all team members’ ideas on ways to be both more efficient and effective. Fraser acknowledged staff expertise. “I’m working for you,” he said. He noted that he has regular hours dedicated to what he calls “JOLA, or just out looking about” (stopping by unannounced with the pure intent of learning). He expressed the need to understand what individuals do so that he can better tell their stories and support the TRANSCOM mission. DTJ General Fraser enthusiastically encouraged the USTRANSCOM staff to continue to work hard & do amazing things for the warfighter during his first Commander’s Call on 18 October 2011. “I trust you. I believe in you . . . I’m excited about what we do.” Photo by Bob Fehringer, USTRANSCOM/PA
General McNabb, thank you for all of the support you have shown to NDTA! We wish you the best of luck to you in all that you do. And, we extend a warm NDTA welcome to General Fraser as he joins the TRANSCOM Team!
Kent Gourdin
In a Strange Land, by Alexander Barnes, published by Schiffer Publishing, Ltd.2011, $79.99, Hardcover, 336 pp, ISBN-13: 9780764337611.
A
mericas involvement in WWI marked its first major entry into European politics. The final cost of that involvement required the US to supply a force to occupy part of the German Rhineland after the war. The force provided was first known as Third Army and then later as the American Forces in Germany (AFG). It consisted of the best divisions in the American Army. With a starting strength of a quarter million doughboys, the Americans marched to the Rhine and began their occupation period in December 1918. When the American phase of the occupation ended in 1923, the force consisted of one thousand soldiers. Many future WWII leaders of the Army and Marine Corps served in this force; including five who would become Marine Commandant, four Army Chiefs of Staff, ten fourstar Generals, and, surprisingly, a National Football League Head coach. This book is written by one of our own, Al Barnes, and represents a bit of a departure from the transportation arena. But for those interested in the US role in World War I, this is a must-have work. Not only is it well written, the book is filled with photographs, maps, event programs, and a myriad of other artifacts that together provide an incredibly comprehensive look at what life was like for both Americans and Germans during the occupation. Indeed, it provided insights into life in general during that time. The book is printed on glossy paper, and lends itself to repeated scrutiny. You cannot flip it open without finding something interesting to read, look at, or simply contemplate. In a Strange Land represents the coffee table book at its finest. DTJ
DTJ Index of Advertisers American Military University............. 34 APL......................................................... 13 ARC......................................................... 23 Bennett International Group.............. 40
52 |
Defense Transportation Journal
Boyle Transportation............................. 6 BNSF Logistics..................................... 19 Coyote.................................................... 15 Farrell Lines.......................................... 17
|
December 2011
FedEx......................................................C4 Innovative Logistics............................. 25 Landstar.................................................C3 Maersk Line, Limited............................. 1
Mayflower............................................. 20 SAIC.......................................................C2 United..................................................... 11 UPS........................................................... 2
FREEDOM
Landstar Government Services delivers freedom from worrying about your most demanding transportation and logistics needs.
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.
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, technology-based 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•WAREHOUSING•RAIL INTERMODAL•TRUCKLOAD•LTL•HEAVY HAUL/SPECIALIZED•EXPEDITED
© 2011 FedEx.
It’s always good to hear that your shipment is arriving earlier. FedEx now offers the fastest package service from the U.S. to Afghanistan. By using our FedEx Boeing 777 aircraft, we are able to take advantage of FedEx connectivity in the Middle East. Which means FedEx International Priority® and FedEx International Priority® Freight shipments now arrive in Afghanistan in only 4 days. Rely on our expertise for an earlier delivery of your shipment. fedex.com/international