1. Military Surface Deployment & Distribution Command International Tender Update John Becker and John Johnson HQ SDDC 30 October 12

2. Delivering Trust IT2012 Change 4 Updates  Introduction: Added a “GBLOC Regionalization” section highlighting upcoming bases to be regionalized  The Government suspended the 70% Transit Time Rule requirement for the 2012 DPS Rate Cycle Item 216 b  Item 402 Note -The collection of unearned freight charges under this item is not applicable to shipments in which the TSP has paid Full Replacement Value (FRV) under 10 USC 2636a on claims for loss or destruction in an amount less than or equal to the TSP maximum liability set forth by this solicitation.  Item 526 Diversion Table is currently being revised and has been temporarily removed from the Personal Property website. We recommend all parties (JPPSOs/PPSOs & TSPs) contact HQ SDDC Personal Property Operations Division via email at army.sddc.safb.ppops@mail.mil for assistance with shipments that require a diversion.  Item 700/701/702 - OTO Guideline language temporarily removed until OTO is active in DPS 2

3. Delivering Trust Unearned Freight  Unearned freight is the return of transportation costs for personal property items that were lost or destroyed while in the possession of the Transportation Service Provider  Recent U.S. Court of Federal Claims decision ruled that the collection of unearned freight in conjunction with Full Replacement Value for lost property is no longer allowed  Updated language in IT and 400NG 3

4. Delivering Trust Fuel Rate Adjustment  28 Feb Fuel Surcharge Strategic Comm Message  5 Jul FRA letter outlining proposed changes  14 Aug SDDC meeting with industry  20 Sep SDDC CG letter to industry  26 Sep NDTA briefing to SDDC CG  Official announcement from MG Richardson  Current Formula Baseline: $2.50 Calculation: % of line haul based on EIA average (10¢ increments) 4

5. Delivering Trust Alaska Rate Structure  Started review of rate filing and best value scoring for Alaska 2009  Met with industry reps from Alaska and Montana  SDDC Alaska Rate Structure Working Group Apr 11  SDDC visit to Alaska Aug 2011 5

6. Delivering Trust Alaska Rate Structure  New structure: Use water route for CONUS to Alaska shipments Single port in CONUS (Tacoma, WA) Reduce water haul table 17% Bunker fuel surcharge as pass through  Standardize invoice from ocean carrier for PPSO validation  Effective 2013 rate filing 6

7. Delivering Trust Foreign Flag Waivers  Internal review of FFW requests  Sent message on process for requesting waivers through SDDC Ensure it’s in correct format, all data filled out, in advance  Monitoring of Foreign Flag Waivers and actual routes used 7

8. Delivering Trust Questions? 8