First Destination Transportation and Packaging Initiative DLA Land and Maritime First Destination Transportation and Packaging Initiative (FDTPI) TKO November 2017

First Destination Packaging ASTM 3951 Commercial Packaging Saves $$ Decreases waste in landfills Solicitation indicates commercial pack http://www.dla.mil/LandandMaritime/Offers/Services/TechnicalSupport/Logistics/Packaging/PackWhatsNew.aspx

FDT NIIN Profile Aviation, Land and Maritime, Industrial Hardware, Construction and Equipment Exclusions Nuclear / Related Items Critical Safety Items Hazardous Materials FMS Transportation Protective Service OCONUS Origin Vendors

FDT Overview First-Destination Transportation (FDT) Implemented Oct 2013 Focuses on Class IX, IV and VII Supplies Target Market: 17,000 plus vendors DLA manages inbound transportation movements and leverages DLA scale to improve transportation rates FOB Origin I/A at Destination (unless I/A Origin required by the material) Provides visibility of transportation costs Provides visibility of material in transit Consolidates shipments under a transportation coordinator FDT Targets DLA’s Aviation, Land, Maritime, Industrial Hardware and C&E Supply Chains

FDT Example - Filters Each year, DLA buys over 1,000,000 Filters Method Unit DLA Discount Parcel Package 44% Less than Truckload (LTL) Pallet 50% Truckload (TL) Truckload 1% Note: Rate comparison as of January 2017 Origin: Hebron, KY 41048 478 Miles Destination: New Cumberland, PA 46750 Each year, DLA buys over 1,000,000 Filters Potential LTL Savings = $250,000 annually

FDT Helps Suppliers Focus on Core Business and Removes Geographic Barriers Suppliers who take advantage of this initiative and reduce their prices and delivery times will increase their competitive advantage! who take advantage of this initiative

Industry Suppliers HAVE Savings… What the CFO knows about the cost of Transportation Carrier rate negotiations Carrier contracts Freight invoice auditing $$$$$$$$$$ Freight invoice payment Cash Flow Claims Processing Industry Suppliers HAVE Savings…

Suppliers Ship Using DLA’s Vendor Shipment Module (VSM) FDT and VSM Suppliers Ship Using DLA’s Vendor Shipment Module (VSM) Basics Suppliers must register to use VSM. Register at: https://vsm.distribution.dla.mil Training is available online and VSM staff can answer questions as well. (email delivery@dla.mil or call 1-800-456-5507) For FDT procurements, do not include the cost of shipping material to the government in your quote – the government will ship the material. When ready to ship, suppliers request a pick-up in VSM. Pick-ups by commercial carriers are generally made within 48 business hours. Suppliers schedule pickup through VSM

FDTPI Targets DLA’s Aviation, Land, Maritime, RECOGNIZING FDT AWARD TEXT This is a First Destination Transportation (FDT) program award. If this award is for FMS, this instruction does not apply. 1. CONUS AWARDEE SHIPPING TO ALL LOCATIONS: Transportation requirements for FDT awards are located in DLAD procurement Note C16 First Destination Transportation (FDT) Program-Government arranged transportation and DLAD Procurement Note C20 Vendor Shipment Module (VSM). 2. OCONUS AWARDEE WITH INSPECTION AND ACCEPTANCE AT DESTINATION: If awardee is outside the contiguous United States, transportation requirements are located in DLAD Procurement Note 16C First Destination Transportation (FDT) Program- Government-Arranged Transportation and DLAD Procurement Note C 17 FDT-Shipments Originating from Outside the Contiguous United States and DLAD Procurement Note C20 Vendor Shipment Module (VSM). The contiguous United States location identified in the awardee’s offer is the f.o.b. origin pick-up point. 3. OCONUS AWARDEE WITH INSPETION AND ACCEPTANCE AT ORIGIN: If awardee is outside the contiguous United States and Inspection and Acceptance are at Origin, DLAD Procurement Note C21 Shipping Instruction Request (SIR) applies. FDTPI Targets DLA’s Aviation, Land, Maritime,

ADDITIONAL TRANSPORTATION CONTRACT INFORMATION Procurement Note C20 Vendor Shipment Module (VSM) Procurement Note C21 DCMA Shipping Instruction Request (SIR) Procurement Note C18 Shipping Instructions (Export) Procurement Note C19 Trans-Shipment of Material through DLA Containerization and Consolidation Points (CCP) 52.247-48 F.O.B Destination-Evidence of Shipment 52.232-9006 Transporter Proof of Delivery Additional Contract Clauses Transporter Proof of Delivery DLAD 52.232-9006

Key Information/Vendor Success Resources Read Supplier Communication (DIBBS, Fed Biz Ops, email) VSM Re Supplier registration: https://vsm.distribution.dla.mil Website for FAQs and VSM training information http://www.dla.mil/does/FDTPI More Questions: FDT@DLA.MIL VSM Help Desk: 800 456-5507 Mon-Fri 0600-1700 Eastern Email: delivery@dla.mil DCMA administered contracts VSM Help Desk: 314 331-5573 M-F 0700-15:30 Central Email: vsm.shipments@dcma.mil

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