[Federal Register Volume 63, Number 230 (Tuesday, December 1, 1998)]
[Notices]
[Pages 66129-66131]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-31950]


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DEPARTMENT OF DEFENSE

Department of the Army


Implementation of the Defense Table of Official Distances (DTOD) 
for Personal Property Shipments

AGENCY: Military Traffic Management Command, DoD.

ACTION: Final Notice (Policy Statement).

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SUMMARY: The Department of Defense (DOD) has decided as a matter of 
procurement policy and internal agency procedures to change the 
distance calculation source used for transportation payments and audits 
in the DOD personal property program. Beginning on the effective dates 
listed below, DOD will use the Defense Table of Official Distances 
(DTOD) as the standard source for distance calculations worldwide. 
Carriers participating in the current International and Domestic 
household goods program must agree to be bound by DTOD mileage for 
payment and audit purposes. This policy decision is in furtherance of 
DOD's goal to use a single integrated, electronic distance calculation 
source for its transportation programs. On-going reengineering 
initiatives using mileage calculation as a basis for payment and audit 
will transition to DTOD at the earliest opportunity.

EFFECTIVE DATES: April 1, 1999 (international shipments) and May 1, 
1999 (domestic shipments).

FOR FURTHER INFORMATION CONTACT: Mr. Alex Moreno, HQ, Military Traffic 
Management Command, ATTN: MTOP-T-PR, Room 625, 5611 Columbia Pike, 
Falls Church, VA 22041-5050, telephone (703) 681-6190, FAX: (703) 681-
9681.

SUPPLEMENTARY INFORMATION: In furtherance of DOD's goal of making its 
transportation programs more standard and efficient, the DOD 
Comptroller tasked MTMC to find a commercially available, integrated, 
automated distance calculation source capable of supporting all DOD's 
transportation and travel-related requirements. After an extensive 
proof of concept and market analysis phase, MTMC contracted to acquire, 
install, integrate, and maintain a system (DTOD) adaptable to DOD's 
global transportation and travel mission responsibilities. DTOD, 
commercially known as PC*Miler by ALK Associates, will become the DOD 
standard, automated source for distance calculations worldwide. A 
notice of proposed implementation of DTOD in the DOD personal property 
program was published in the Federal Register, Vol. 63, No. 111, Pages 
31761-31762, Wednesday, June 10, 1998. In response to this notice, 
numerous comments were submitted and were carefully considered in the 
decision to implement this policy change. Listed below are the comments 
and MTMC's response:
    Comment 1: The cost to purchase and maintain a separate distance 
calculation product for DOD shipments is too high.
    Response: MTMC is aware of the economic impact implementation of 
DTOD may have on personal property carriers, particularly small 
businesses. Therefore, MTMC did not mandate that carriers purchase and 
maintain DTOD in order to participate in the DOD personal property 
program. Instead, MTMC only requires that participating carriers agree 
to be bound by DTOD mileage for payment and audit purposes. MTMC 
believes that carriers may choose to adapt to the DTOD implementation 
in a variety of ways, to include:

[[Page 66130]]

    a. Carriers not purchasing DTOD may rely on the payment process to 
identify the distances used for payment.
    b. Carriers may subscribe to the DTOD-compliant commercial product 
(PC*Miler) through the Internet for an estimated price of $375 per 500 
look-ups.
    c. Carriers may purchase and install ALK's PC*Miler in a manner 
best suited to their own business strategies and computer operations.
    d. Carriers may explore the possibility of acquiring hard copy 
versions of PC*Miler.
    e. Carriers may rely on the comparison of variances between Rand 
McNally's Milemaker and ALK's PC*Miler distances for the 100 busiest 
traffic lanes. Copies of the comparison are available on request.
    Additionally, MTMC is exploring automated methods of annotating all 
GBLs to reflect the DTOD distance.
    Comment 2: Serving the commercial market and participating in the 
DOD personal property program will require them to purchase and 
maintain two different systems--one for DOD and another for commercial 
customers.
    Response: MTMC does not require carriers to purchase PC*Miler and 
maintain two different distance systems. Carriers may continue to use 
the mileage software they are currently using. However, for DOD 
shipments, payment and audit will be based on the DTOD distance 
calculations. Carriers will have the options listed in Comment 1 or 
other options suited to each carrier's business strategy/business 
relationships and market situation.
    Comment 3: No benefit to be gained by replacing the currently used 
distance calculation product, which does not need to be replaced.
    Response: In response to the National Performance Review and other 
Government improvement initiatives, DOD has looked to find more 
economical and efficient ways to conduct its business processes. 
Currently, DOD uses several distance information sources and manual 
processes to support its various transportation programs. The result is 
a variance in distance computations produced by different products and 
a high cost to DOD for licensing and maintaining multiple sources. 
DOD's DTOD initiative will create a standard source within DOD for 
distance calculations worldwide and will reduce costs, increase 
efficiency, and help streamline the transportation payment and audit 
process. An electronic mileage system enables more accurate invoice 
processing, while reducing the expense of auditing and rebilling for 
both the Government and carriers. DOD believes these benefits clearly 
justify the costs associated with implementing DTOD.
    Comment 4: DOD claims to favor use of commercial practices, but 
DTOD is a DOD-unique product and not the commercial standard in the 
household goods industry.
    Response: DTOD is a commercial product and is, therefore, 
consistent with commercial business practices. DTOD is based on ALK's 
PC*Miler, which is a commercial off-the-shelf product modified to 
include the DOD standard point of location codes (SPLCs) and several 
locations within CONUS and overseas. While DOD recognizes that Rand 
McNally is the mileage basis for the household goods industry's 
commercial tariff, DOD points out that its personal property program is 
a separate system not directly tied to the mileage sources used in the 
commercial market. Use of DTOD will move DOD closer to a single, 
automated, and widely used commercial standard for all its various 
transportation programs. DTOD and PC*Miler will be subject to the same 
version control process and will feature delivery systems compatible 
with current commercial usage for like products.
    Comment 5: PC*Miler provides premium features that are not needed 
by small businesses.
    Response: A basic (no frills) PC*Miler will be made available on 
the Internet for an estimated price of $375 per 500 look-ups. It will 
contain the necessary information for mileage verification.
    Comment 6: PC*Miler's routing system ignores the reality of the 
Alaska transportation network.
    Response: MTMC is currently working with representatives from the 
Alaska Movers Association to discuss the Alaska transportation network. 
An initial meeting was held on 18 September 98 and a second meeting is 
scheduled for mid-November.
    Comment 7: DOD's intent to use the shortest miles may put carriers 
competing for Government traffic at a disadvantage because the motor 
carrier industry's operating systems are geared toward the use of 
practical miles.
    Response: Household goods shipments are not normally over-
dimensional shipments and are, therefore, routed via the shortest 
truck-navigable route. DOD has always used shortest miles for freight 
shipments not involving munitions or overweight/over-dimensional cargo. 
Hence, there will be no change in the distance standard used for 
household goods shipments.
    Comment 8: Carrier information systems use AS400 and Unix operating 
systems. It is not clear whether DTOD will run on these larger systems.
    Response: DOD has chosen to use a Windows NT operating system. 
However, carriers are free to license a PC*Miler version that will run 
on an operating system of their choice. ALK currently has versions of 
PC*Miler for AS400 and Unix operating systems.
    Comment 9: System duplicity would increase the probability for 
error in distance 5 calculations.
    Response: DOD transportation and payment activities, including 
DFAS, will base mileage computations on DTOD. Transportation audit by 
GSA will also be based on DTOD. PC*Miler, which is a DTOD-compliant 
commercial product, and DTOD are identical and will produce consistent, 
error-free mileages. The use of commercial mileage software other than 
PC*Miler may produce mileages different from DTOD. In such instances, 
DTOD will govern.
    Comment 10: Many small businesses do not have updated computer 
capability or do not use computers.
    Response: MTMC realizes that all carriers do not operate their 
businesses in the same way. However, current and future business 
practices are centered on the use of computers in one way or another. 
As the business process changes to embrace principles of electronic 
commerce (e.g., electronic data interchange and electronic funds 
transfer), MTMC is anxious to capitalize on the economies and 
efficiencies those changes represent. MTMC is confident that commercial 
shippers and transportation providers are moving in the same direction.
    Comment 11: PC*Miler is unproven in industry and lacks version 
control.
    Response: Currently, over 9,500 shippers and carriers in commercial 
transportation are using PC*Miler. The DTOD project office, in 
conjunction with the software vendor, will maintain precise version 
control of the distance software to ensure all parties (finance 
centers, audit agencies, shippers, and carriers) have the same version 
of DTOD/PC*Miler at the same time.
    Comment 12: DOD's proposed implementation of DTOD in its personal 
property program violates the Regulatory Flexibility Act by failing to 
include an initial regulatory flexibility analysis.
    Response: DOD's decision to adopt and implement a single, 
integrated mileage calculation source is a procurement policy decision 
that directly related to the basis DOD will use to pay for commercial 
transportation

[[Page 66131]]

services. The decision and steps taken to implement it in DOD's 
personal property program relate to public contracts and are exempt 
from the Regulatory Flexibility Act, 5 U.S.C. 601-612. This policy 
decision to implement a single distance calculation source for 
procurement purposes is not considered rule making within the meaning 
of the Administrative Procedure Act or the Regulatory Flexibility Act.
Mary V. Yonts,
Alternate Army Federal Register Liaison Officer.
[FR Doc. 98-31950 Filed 11-30-98; 8:45 am]
BILLING CODE 3710-08-P