MTMC TO CHANGE BARGE, RAIL AND TRUCK CONTRACTING PROCESS

MTMC TO CHANGE BARGE, RAIL AND TRUCK CONTRACTING PROCESS    The U.S. Military Traffic Management Command wants to change the way it arranges long-term surface transportation contracts with truckers, railroads and barge operators.
   MTMC, the ocean and overland transportation logistics unit of the U.S. armed forces, will adopt the contract rules of the Federal Acquisition Regulation. While these rules have been around a while, transportation was traditionally exempt because it was already regulated. Congress has since eliminated most regulations on transportation.
   The agency used to use non-Federal Acquisition Regulation procedures for its truck, barge and rail transport needs. Carriers would get as little as four hours notice to provide transportation assets under the old process.
   Barge, truck and rail contracts will soon resemble MTMC’s long-term ocean carrier contracts. “With this change, we bind both parties — the government and the carrier. No one can walk away,” said Maj. Gen. Kenneth L. Privratsky, commander of MTMC, at a recent meeting of the National Defense Transportation Association in New Orleans.
   Rail carriers have shown support for MTMC’s shift in contract policy. “By awarding the contract to one or more carriers through the Federal Acquisition Regulation contract process, the carrier can anticipate the needs and ensure equipment is available to support the awarded shipments,” said Gail Snodgrass, manager of business development at Union Pacific Railroad.
   Truckers are more cautious. “We got out of the massive paperwork drill with long-term contracts — there is a concern we are going back,” said Dave Larson, military and government representative for Landstar.
   MTMC has assured transportation providers that the new regulations would reduce the amount of paperwork in the contract process. “We will assist industry in the conversion from a tender-based system for those long-term recurring movements that are now being transitioned to the Federal Acquisition Regulation contracts,” Privratsky said.
   However, the Federal Acquisition Regulation doesn’t cover individual, non-recurring shipments. These will continue to be covered as traditional government bill of lading moves. Military household goods contracts also come under different rules.