57th annual NDTA transportation and logistics forum and exposition.

Kansas City, MO September 13--September 17, 2003

WRAP-UP

Summaries and Overviews of Forum Events

Forum Photo Album Sponsored by US Airways

WELCOME TO KANSAS CITY RECEPTION

Summaries and overview compiled by Susan Leigh, DTJ Managing Editor. Thank you to our reporters who lended support.

The Yellow Corporation, a big supporter of NDTA, welcomed attendees to Kansas City with a reception at the Historic Union Station. Union Station is a Kansas City landmark and a notable transportation hub. Guests were treated to a family style barbeque buffet catered by local BBQ favorite Jack Stack Restaurant.

This private event was held in the Sprint Festival Plaza of Union Station. One of Union Station's main exhibits, "Science City," was made available to guests to explore during the reception. The proceeds of the reception were donated to the NDTA scholarship fund.

OPENING CEREMONY

The Forum officially began with the annual Opening Ceremony. Most NDTA Chapters were represented and the ceremony began with a chapter roll call. Delegates stood and told the audience where they were from and also gave a brief overview of their projects and accomplishments. The roll call proved that NDTA members were very excited and enthused to be at the Forum.

Greg Reid, Forum Co-Chair, Chief Marketing Officer, Yellow Corporation, was Master of Ceremonies. The Color Guard was provided by the Lincolnland Quintet of Missouri. Mr. Bob Ellison sang a patriotic tribute in honor of our service men and women.

Mr. Michael Haverty, CEO, Kansas City Southern, welcomed the NDTA to Kansas City and spoke about the role NDTA plays in supporting the issues of the rail industry. Mr. Haverty announced an alliance currently being formed amongst transportation companies to work to get legislation passed to strengthen the US transportation infrastructure.

Mr. William Zollars, CEO, Yellow Corporation, spoke on Corporate Transformation. Yellow's story of corporate transformation is applicable in any industry. Mr. Zollars spoke candidly about the rough but necessary transformation that had to be made at Yellow to keep the company energized. "It is not the strongest of the species that survive, nor the most intelligent, but those most responsive to change," Zollars stated in quoting Charles Darwin. At Yellow, everything starts with the customer. The Yellow story tells of how a company changed from inwardly-focused to customer-focused. Yellow provides tips on how to be successful during any transformation of an organization or entity. Change is inevitable in the work environment as much as it is in life. Masters of change are like masters of the universe. The full presentation is available at www.ndtahq.com.

CORPORATE ROUNDTABLE OVERVIEW

by B.J. Talley, MSC Public Affairs 

Participants: MG Wade McManus, USA, Commanding General, Joint Munitions Command; MG Mary Saunders, USA, Vice Director, DLA; Mr. Andy Fogarty, NDTA, Chairman of the Board; MG Ann Dunwoody, USA, Commander, MTMC 

TECHNOLOGY AND OUR DIRECTION

* Where are we headed with Technology?

--Precision Guided Logistics.

--Automated Identification Technology.

* Asset Visibility Process with Radio Frequency Identification (RFID)

--Everything that moves must have a tag.

--Over 750 RFID sites worldwide.

--183,000 RFID Tags.

--Central Command 55 RFID sites.

* We have put as much into the Operation Iraqi Freedom reverse deployment as in the forward deployment.

SURFACE TRANSPORTATION

* Challenges.

--572 railroads; five class 1 carriers which employ 80 percent of industry personnel and have 90 percent of revenue.

--Rail and Truck are at best a borderline investment.

--Rising cost, weak return.

--Fuel cost at a record high.

--Trucks less efficient because of emissions\ regulations.

* Challenges of Stock; Product; People.

Stock--Better asset yield. People

--86 percent of Class 1 carrier personnel are in unions and the average age, 53 years old.

--Price of people.

--Skyrocketing healthcare costs.

--13.9 percent increase in healthcare costs this year.

--Last four years healthcare costs have increased above 12 percent.

* Response

--Outsource.

--Mergers, acquisitions.

--The challenges that our industry faces are the same as every other industry faces.

--Pension reform.

--Tort liability reform.

DEFENSE LOGISTICS AGENCY 

* Business System Modification

--Customer relationship important.

--Face-to-face with the customer not just contract relationship. Face-to-face is key because when a contingency arises, we must meet with our contractors and quickly communicate our needs, so we are giving our war fighters the supplies they need when they need them.

* Distribution Planning Management

--Material positioning and warehouse optimization

--We have global decision-making and management for 22 depots.

* Strategic Distribution

--Pre-positioning optimization and readiness at least cost.

* Fuel Automated Systems

--Commercial software will operate the deployment of wholesale fuel.

* A-76

--Non-core function.

--13 DLA depots; 7 contracted depots.

* Work Force Transformation

--Interns training to replace retiring leadership.

--Our transportation roadmap is to support our war fighters in an efficient and timely manner.

MILITARY TRAFFIC MANAGEMENT COMMAND 

* 8 of 10 Army divisions are deployed or redeployed for Operation Iraqi Freedom.

* MTMC name change to Surface Deployment and Distribution Command (SDDC), January 2004.

* After 9/11 we realized we were not organized for contingency operations. We had Fifty percent less workforce than Desert Storm. We have to rely on the reserves more. A challenge is how to get them moved out and installed quickly.

* Goal is to centralize the command to Fort Eustis, VA, instead of having a split command.

* We need to know what we are moving and where it is.

* We must have proper identification.

* We must prioritize our tasks.

* Another challenge is capability versus efficiency.

* Success

--Moved the Army's 101st Airborne's entire assets in 12 days.

* Technology

--Upgrade communication.

--Legacy systems.

MILITARY UNITS AWARDS LT GEN GARY HUGHEY, USAF, KEYNOTE SPEAKER

Lt Gen Gary Hughey, USAF Deputy Commander USTRANSCOM 

The theme of this year's Forum is "Current Challenges and Transformation." Hopefully, you were here to enjoy Mr. Zollar's excellent presentation on transformation in the corporate world and the discussion that followed. Tomorrow, Admiral James Loy from the Transportation Security Administration will address transportation security and how it's going through unprecedented change in response to the new environment that we live and work in since the events of September 11th. And last, but certainly not least, my boss, General John Handy, will talk to you about military transformation efforts on Wednesday. The scope and magnitude of the changes taking place throughout the defense transportation system are certainly making life interesting for all of us in the transportation and logistics arena.

But I'm not here today to talk to you about what's changed or about what's changing in defense transportation. Instead, I want to talk to you about what, thankfully, hasn't changed: And that's you!

I'm talking about you and the thousands of men and women like you who are the foundation of the defense transportation system. I'm talking about our active duty and reserve military personnel, and I'm talking about our civil service and foreign national employees who work at TRANSCOM, at our component commands--the Military Sealift Command, the Military Traffic Management Command, and the Air Mobility Command--and the people who work at Army, Navy', Marine Corps, Air Force, and Coast Guard installations around the world. I'm also talking about our commercial partners--the ocean carriers, the airlines, stevedores, the truckers, the railroaders, freight forwarders, and defense contractors who provide the United States with a defense transportation system that fully supports our nation's needs in peace and war, and provides a vital capability that every other nation of the world envies but which none can nor will ever equal.

I'd like to talk some numbers to illustrate that point. Since 9/11, Air Mobility Command and its partners in the Civil Reserve Air Fleet have moved over 841,000 passengers. That's more than the population of Delaware, or the Dakotas, or Alaska, or Wyoming. To put it in another context, we're talking about moving everyone in Kansas City halfway around the world--twice! In addition to all those passengers, Air Mobility Command airlifted more than 594,000 tons of cargo.

During that same period, the Military Traffic Management Command and Military Sealift Command delivered over 1.8 million tons of cargo via sealift, including over 1.2 million tons of unit equipment and supplies deployed to southwest Asia to support Operation Iraqi Freedom. 199 sealift voyages, 64 percent of which were MSC-chartered vessels, moved the equivalent of approximately 41,000 C-17 loads in support of this effort. We have also shipped over 177,000 cargo containers from the states to locations around the world. If we average that container volume over the past two-year period, that would make us the fourth largest container exporter in the United States, ahead of such corporate giants as Dow Chemical, International Paper, and Daimler-Chrysler. Taking ration shipments alone, we used over 4,500 containers to deliver nearly 77 million meals to the troops in southwest Asia.

And since January 1st of this year, we have completed over 33,175 railcar shipments and over 291,000 highway shipments worldwide. The numbers are impressive.

But what is truly amazing, and what we often lose sight of, is that this didn't happen by magic--as much as we may wish otherwise, there's no "Scotty, beam me up" in this business. In fact, these moves were accomplished one person at a time, one pound at a time, one box at a time, one truck or railcar or ship or aircraft at a time. And what was most impressive is that it was a relative handful of transportation and logistics professionals who were making it happen at installations, ports, and airfields around the world.

In a few minutes, General Dail will introduce each of the winning Military Units to you, and highlight the accomplishments which contributed to their selection as "best of the best" for their respective service. I had the opportunity over the past year to visit installations and aerial ports and seaports around the world, and to discuss transportation operations with everyone--from the young privates and airmen and sailors and Marines, all the way to the Secretary of Defense.

EVERYDAY HEROES

During my travels I've run into many heroes. These are everyday heroes like Fran Willis and her 8-member team from MTMC's 842nd Transportation Battalion who, with a small cell of reservists from the 1395th Transportation Terminal Brigade out of Seattle, managed terminal and vessel operations at the Port of Beaumont, Texas. In a matter of days, this handful of heroes managed the discharge of over 1,600 railcars and 1,300 trucks bringing over 7,000 pieces of equipment from the Army's 4th and 25th infantry divisions to be loaded aboard 12 ships, including four of our massive large medium-speed roll on/roll off vessels. Did they view themselves as heroes? No. As Fran put it, "To be a part of history, the first ship that was combat loaded in 4th infantry division history, was a rare and privileged experience in my career."

Heroes like Colonel "Sandy" Sanders and the 115 people of the 1192nd transportation terminal brigade, a reserve unit with diverse civilian backgrounds--financial advisors, college professors, corporate employees and students. Normally, reserve units first report to a mobilization station to take care of personnel and finance issues--only then do they move on to their appointed place of duty. When called to stand up operations at the Port of Corpus Christi, Texas, the 1192nd headed directly to the port where, in a month's time, they received over 1,000 railcars, staged over 11,000 pieces of equipment, and loaded 20 vessels. "Colonel Sanders told me they eventually got the personnel and finance issues taken care of two weeks into their mobilization, but clearly that wasn't their first priority. Their priority was on converting the Port of Corpus Christi into a 24-hour military terminal operation, and each member of the unit contributed in remarkable ways to that effort.

It wasn't just the G.I.'s who mobilized either. Within 24 hours, 40 specially trained members of the International Longshoreman Association "deployed" from as far away as Houston, Texas, and Wilmington, North Carolina, to support terminal operations in Jacksonville, Florida. As Charles Spencer of the ILA put it, "We'll mobilize whatever resources they need. We are proud to be able to do this for our country." I've been told that ILA stands for "I Love America," and in this case it really showed--between 400 and 500 longshoremen supported round-the-clock operations at Jacksonville, and their herculean efforts at Jacksonville and the other strategic seaports on the east and Gulf Coast made a tremendous difference in our ability to deliver combat forces to southwest Asia quickly and safely.

On the airlift front, you may recall that it wasn't until we were well into the conflict in Afghanistan before we were able to open seaports and surface lines of communication into this totally landlocked country. Using night vision equipment under cover of darkness, Air Mobility Command crews brought combat forces into southern Afghanistan and sustained them, to include using C-17 aircraft to deliver fuel to ground component forces.

When we were unable to deliver forces by sealift into turkey, aircraft and aircrews from Charleston AFB, South Carolina, and McChord AFB, Washington, as well as planners from the tanker airlift control center at Scott AFB, Illinois, worked closely with Central Command to airdrop almost 1,000 soldiers of the 173rd airborne brigade into Northern Iraq under cover of darkness. As soon as airfields were secured, Air Mobility Command quickly delivered enough combat power to establish a northern front in Iraq, an essential element of the ground campaign.

One largely untold story is aeromedical evacuation. Air Mobility Command has transported more than 11,000 patients, about 1,500 of them wounded in battle. Without missing a beat, for every patient in their care, AMC provided incredible medical capability on the ground close to the battle, all the way back to safe and secure hospitals for continued treatment.

On the civilian side of the airlift business, over 16,000 aircrews and flight attendants volunteered to support missions flown by the US-Flag Air Carriers under the Civil Reserve Air Fleet, or CRAF, program. According to the Dallas Morning News, competition was so fierce among airline crews wanting to fly CRAF missions that only the most senior flight crews won the routes, even after being advised they would have to go through chemical and biological terrorism training. Captain Bart Roberts of American Airlines noted, "It's been a privilege. It's an opportunity to really take part in a very important patriotic responsibility." Another pilot, Sean Bishop of Delta Airlines added, "Taking these soldiers along with us and doing our country a service made us feel that we were contributing in a meaningful way to the war on terrorism." Anolyn McIntosh, a flight attendant for Delta Airlines, summed up a sentiment shared by many of our commercial transportation partners, "I believe in what we are doing. I believe in these troops standing up for our country. I'm proud of them. I want to be able to do my part."

Over 5,000 US Merchant Mariners, including 83 midshipmen from the US Merchant Marine Academy, answered the call to support US military forces, traveling into harm's way to transport materiel for the armed forces. Not only volunteering to deploy into a combat zone on largely unarmed ships, they also volunteered to receive Anthrax and Smallpox vaccines to protect them against possible biological attacks. Since Revolutionary War days, our mariners have served this nation with valor and enthusiasm, and they responded just that way to support Operation Iraqi Freedom.

And it wasn't just transporters and logisticians who supported the transportation mission. Given the route our ships had to take--through the Straits of Gibraltar, the Suez Canal, and the Straits of Hormuz--serious concerns were raised about our ability to protect these ships from potential terrorist attacks from small boats. As an interim measure, force protection teams from the Army and Marine Corps were tasked to provide shipboard protection. In the meantime, and on very short notice, more than 1,300 Army Reservists from the Puerto Rico Army National Guard were organized into 110, 12-person teams, trained and equipped to provide force protection and security" aboard MSC ships sailing to and from southwest Asia under the "guardian mariner" program. In all around 70 fleet force protection teams and 75 guardian mariner teams were used aboard MSC ships during Operation Iraqi Freedom.

I'm sure most of you are familiar with the US Coast Guard's vital mission to safeguard our nation's waterways, ports and harbors. However, you may be surprised to learn that there were eight Coast Guard cutters, other patrol boats, and 600 Coast Guard personnel securing ports and harbors and waterways in the Persian Gulf. When asked why the Coast Guard was operating so far from home, the response was simple--"that's what we do best." Port security units contributed significantly to operations in Urn Quasr and Bahrain, providing command and control for shoreside security and escort operations.

And let's not forget the heroes who worked behind the scenes over the last decade, championing the need to modernize our airlift and sealift fleets; who took best business practices--such as containerization and intermodalism and time-definite delivery--and adapted them to support the unique needs of the military; and who helped usher in the current generation of information technology systems.

What has impressed me most in my travels is that we are blessed with ordinary people doing extraordinary things, making personal sacrifices for the greater good, setting aside their needs so that others--who they may never meet face-to-face--may benefit, doing things not for fortune or glory, but because it is something that needs to be done and they step up to the plate and do it--and think nothing of it. No big deal? Believe me, it is a big deal!

One of the problems with being a hero is that you are very much in demand. In the press of the urgent, we sometimes lose sight of what's important, and don't always take the time to reflect on what we've done and how those accomplishments contribute to the mission, which ultimately is the defense of this great nation.

The units we are recognizing today represent all facets of the transportation and logistics mission--providing the full range of transportation and distribution services; operating and maintaining vehicle fleets, logistics support ships, and airlift aircraft; managing air and seaport operations; and supporting counter-drug and search and rescue operations from the frozen Arctic to the jungles of South America. As diverse as they are, they share some things in common; they are units staffed with professionals, committed to their customers and their craft, who relish challenges and are eager to take them head on, who look at obstacles as opportunities; creative, innovative, and ready to tackle whatever challenges arise; and expertly guided by forward thinking leaders. These units represent the best in all of us, and are a reflection of all that we aspire to be.

With heroes like the ones we are about to honor, and with everyday heroes like you, I am confident that we will rise to meet whatever the future holds with your energy, enthusiasm, and expertise. That's your enduring quality and the legacy you leave for future generations of transporters and logisticians, and a proud legacy it is. I am proud to be a member of the transportation family. I hope you are as proud of yourselves as I am of you. Thank you and God bless you all.

RECOGNITION AND SCHOLARSHIP BREAKFAST MS. DIANE MORALES, KEYNOTE SPEAKER

Ms. Diane Morales Deputy Under Secretary of Defense Department of Defense

The Recognition and Scholarship Breakfast acknowledged scholarship winners for 2003. The NDTA foundation gave over $20,000 in scholarships this year. Ms. Morales addressed the audience on behalf of DoD.

INTRODUCTORY COMMENTS

I'm here this morning on behalf of Secretary Rumsfeld and the entire Pentagon team. We wish to add our congratulations to the honorees for a job well done.

I also represent another very special team which deserves to be recognized--not only at this forum, but throughout our great country. I'm talking about the brave men and women in uniform who are serving in Iraq and Afghanistan and other places all over the world. They include thousands of transportation and logistics specialists who answered our nation's call, and they're doing a terrific job for all of us.

I've had the privilege of working with DoD for the past two years--ever since President Bush asked me to join his Administration.

When I arrived back at the Pentagon in July, 2001, I already knew I could count on a dedicated organization, both military and civilian. I was fortunate to have worked with many of these people a decade earlier, during the Bush Administration.

During this tour my mission has been to lead defense logistics in a new direction. As good as the Department's support operations have been, we need them to be even more effective--to provide the very best support to America's warfighters in a changed threat environment. And frankly, to accomplish this, we had to step outside our traditional logistics lane. Hold that thought, and we'll pick it up in a few minutes.

QUADRENNIAL DEFENSE REVIEW (QDR)

The Department's 2001 blueprint for transforming our forces for the 21st century (the Quadrennial Defense Review) laid out specific requirements for all military operations, including logistics.

In keeping with QDR timelines, we gave our own strategy a forward-looking name. We called it the "Future Logistics Enterprise"--or FLE. It was developed with the support of the senior leaders of the military services, the Joint Staff, the Defense Logistics Agency, TRANSCOM, and JFCOM. These partners represent both the customer and the service provider.

FLE's goal is ambitious--to provide combatant commanders with logistics support so forces can deploy anywhere in the world within 96 hours. That means bringing supply chain readiness to the point where our customers can mount a major force deployment in-theater and be ready to engage in less than two weeks. Fulfilling these FLE goals would turn logistics into a key competitive advantage for US warfighters.

STEPPING UP TRANSFORMATION

The timetable for achieving the QDR goals was 10 years, and to his credit, the President wouldn't wait. On September 10, he ordered transformation to speed up.

The good news is the FLE initiatives and the logistics community were already ahead of schedule. We were establishing clear accountability for weapons systems ... drawing on industry capabilities for support ... retraining our people ... and modernizing processes and systems with leading commercial solutions.

9-11 HAPPENS

The next morning--September 11--was a beautiful late-summer day. And as you know, before noon we recognized that defense transformation needed to move even faster.

That morning I happened to be on my way back to the Pentagon when the hijacked plane hit the building. From the car, I saw the fireball erupt. Mercifully, all of our staff were accounted for by nightfall. And the next day--while the building was still burning--we went back to work motivated as never before.

From that point on, our nation has been at war--a new kind of war, with a new kind of enemy--an enemy without a forwarding address ... an enemy who defends no territory ... who operates in the shadows ... with no regard for morality or innocent life.

GLOBAL WAR ON TERROR 

A global war against such an enemy called for a bold new strategy--one that requires every resource at our disposal and all the advantages America has. We have to strike the enemy wherever we find them, with overwhelming force and unprecedented speed and flexibility--"shock and awe."

It was also clear that this new approach to war would require fundamentally different support structures. It called for structures built on tightly-knit collaboration and real-time information--structures that are what Admiral Cebrowski, the Pentagon's Transformation Czar, calls "network centric." In logistics, it means using information technology to ensure efficiency, stability, and predictability. Knowledge-enabled logistics would make it possible to get just the right thing, in just the right place, at the right time.

OPERATION ENDURING FREEDOM

The logistics community responded to this challenge in a big way. And the results speak for themselves. Within 23 days of the attacks on the Pentagon and the World Trade Center--with smoke still rising from the ruins--we launched the air campaign of Operation Enduring Freedom in Afghanistan. And the Taliban learned the truth of that old saying--those who sow the wind, reap the whirlwind.

Speed and flexibility were key. For the first time ever, Special Forces led the way--mounted on horses like 19th century cavalry, and directing 20th century bombers to targets, using 21st century communications. When Secretary Rumsfeld was asked what he meant by re-introducing the horse cavalry, he said, "It was all part of the transformation plan."

OPERATION IRAQI FREEDOM

This year, in Operation Iraqi Freedom, we made additional breakthroughs. We moved a ground force farther and faster than anyone had ever done in history--300 miles in 22 days.

In the process, we achieved historic readiness and mission capable rates. The supply chain was stretched very thin, but never broke. We kept our warfighters equipped with ammunition ... food ... water ... fuel ... medical supplies ... and whatever else they needed.

We moved 15 million square feet of cargo in 60 days, using 100,000 containers that would stretch 379 miles. The effort involved more than 6,000 railcars ... 157 vessels ... 108,000 truck shipments ... and the third largest airlift in history.

Even today, we have 2,500 trucks on the road every day between Kuwait and Iraq, carrying--among other things--1.5 million litres of water and more than 300,000 MREs a day.

What's more, we're doing this while continuing the fight in Afghanistan, maintaining a strong defensive posture in Korea, assisting the international force in Kosovo, and supporting an international relief effort in Liberia. In the process, we've reduced logistics operating costs by $55 billion over the 5-year defense plan.

MOVING AHEAD

We're very proud of these accomplishments. Moreover, we're very proud of you in this audience who made this possible.

On the flight from Washington, I recalled the musical, "Oklahoma," when Will returns from a trip and tells Annie about the wonderful things he saw in Kansas City. He says, "They've gone about as fur as they can go!"

In fact, our recent "lessons learned" tell us we haven't yet gone as "fur" as we can go. Until the global war on terrorism is finished, the transformation of defense logistics has farther to go.

Accordingly, I am announcing today that the second-phase--the implementation phase of the Future Logistics Enterprise--will be renamed "Force-centric Logistics Enterprise."

The future is now, and our customers come first. We've accelerated our efforts to bring on additional capability. It's time to demonstrate the benefits of the FLE programs that have been in design and development since I took office in 2001. And we'll do that through land, air, and sea implementation pilots. We'll demonstrate improved weapon system support through performance-based logistics and collaboration with industry. Working with Congress, we'll make visible the costs to sustain a weapon system through a single color of money. We'll examine mission capability improvements, and working with TRANSCOM/, look at end-to-end distribution performance. And most important, we'll look at how information gained from new integrated systems and tools provides better situational awareness.

The success of these logistics programs is already evident from our performance in Operation Iraqi Freedom. One noteworthy example was the FA/18 EF/FIRST program, in which we flew 430 more sorties than we planned, and still maintained the ability to ensure 100 percent weapons systems support.

Additionally, we've designed a theater distribution support concept of coordinated CONUS and theater logistics operations centers [CLOCs and TLOCs] that has been picked up by others in the building. You will hear more about that soon.

We also gladly await the new role of TRANSCOM as distribution process owner. OIF Lessons Learned are telling us that "last tactical mile" remains a problem and in need of new processes.

Through our continued work with the services, TRANSCOM, JFCOM, and DLA, on implementing the Logistics Enterprise Architecture, and with additional tools such as RFID tags and UIDs, we'll have what Under Secretary Mike Wynne calls "knowledge-enabled logistics."

A few minutes ago I mentioned that our success in providing the very best support to our warfighters meant stepping outside our traditional logistics lane. We must integrate logistics with operational planning, financial management, and acquisition--in order to effect the changes necessary to achieve what the QDR requires and to support network-centric structures.

Jointly, across all the defense collaborative partners mentioned before, we are also ensuring logistics transformation by measuring our performance and balancing requirements, investments, and risk through use of a Balanced Scorecard.

There is an adage, "You can't manage what you can't measure." Well, we will be measuring now--measuring force closure rates ... force readiness rates ... logistics chain reliability ... predictability ... and affordability, to name just a few. We're certain and grateful that our industry partners will continue to support us in the implementation of this critical plan.

SUMMATION

A few days ago, as America paused to remember the thousands of our fellow citizens who lost their lives on September 11, we had a reminder of why we are in this fight ... why we are in it to win ... and why the transformation of defense logistics is anything but an academic exercise.

If my father were still with us, I imagine he would have repeated something he told me years ago about the role of logistics. He was in logistics himself during World War II. And I suppose I inherited my love of this business from him.

I recall Dad telling me that old story about how the lack of a nail cost a horse its shoe ... and for want of a shoe, the horse was lost ... and for want of the horse, a rider was lost ... and for want of the rider, a battle was lost ... and for want of the battle, freedom was lost.

That parable seems appropriate as we wage a fight on which our very way of life, our freedom, depends.

THANKS

For all of the Department's achievements to date, we owe a word of thanks to the men and women of defense logistics--both civilian and uniformed--including many of you here today. Our private sector partners have contributed immeasurably to our victories. And at this recognition breakfast, let the record show that your contributions have earned the thanks of a grateful nation.

CONCLUSION

May we always, always, be mindful of those in harm's way, those who came before, and especially those who have made the ultimate sacrifice. May God bless America and each one of you. Thank you.

TRANSFORMING TRANSPORTATION SECURITY ADMIRAL JAMES LOY, USCG (RET), KEYNOTE SPEAKER

Adm James Loy, USCG (Ret) Administrator Transportation Security Administration

Thank you, Greg [Reid, Yellow Corporation]. Thanks also to Ken Wykie for both the kind invitation to be here, and to involve the Transportation Security Administration in NDTA's research and discussions.

Actually, I had hoped to be gloating about a Pittsburgh Steeler win over the local team this past weekend, but I guess the "Bus" got a flat, and the Priest is flying high! Catch the transformation metaphors!

I'd also like to add my own best wishes and congratulations to Jeff Crowe as he moves on to lead the US Chamber of Commerce. I can say with admiration that both Jeff and the NDTA have served the US transportation system well this past year, and we're delighted to have him move to a position where he can continue to do so. He's a man of generous public service.

This year's conference has played the note of "Transformation" to cue the discussions and frame the debate. The Board meetings I've been privileged to attend clearly recognize security issues as one of the prime movers in that transformation discussion.

We hear a lot about the notion of transformation lately. I fully expect to see a new book on the subject showing up in Barnes and Noble any day. The title is likely to be something like "Chicken Soup for the Soul of Dummies Whose Cheese Has Been Moved" by Secretary Don Rumsfeld.

But it certainly is important, whether in government or industry, to recognize that the ability to transform is a must if you expect to keep up with the changing economic and geopolitical landscape.

In the Transportation Security Administration, I've often said that what we have done today will, by definition, not be good enough for tomorrow. We've got to be about the serious business of continuous transformation through innovation. That goes to people, equipment and doctrine. That goes to the simple reality that the bad guy is gaming everything we're doing. Being satisfied with our current state is really backing up!

I was reviewing my notes from September of last year when I spoke to NDTA in Greensboro ... what a difference a year makes! Very often at meetings such as these I get to present what I call, "TSA 101"--our primer on who we are, why we're here, what we've done, where we're going, etc. You all got that last year. The staff is passing out the quiz; results determine what you get for lunch!

I know a lot of you are already pretty familiar with TSA ... if from no other experience than traveling by air since 9/11. But to encapsulate in about 50 words or less: the Transportation Security Administration, which was created in direct response to the September 11th attacks to close the gaps in aviation security, has already accomplished two major mandates; 1) to federalize the screener workforce at 450 airports; and 2) to screen all checked baggage for explosives. We've done that. It was a lot more complex than those two short sentences, but the goals were met within the deadlines imposed by Congress.

Just to sort of bring you up to date on the other accomplishments that I first reported to you last year, we put nearly 60,000 professionally trained, customer service-oriented federal employees on the front lines of our national war on terrorism. These screeners and support staff have fundamentally transformed how every man, woman, and child who gets onboard an aircraft views their security while in the air. From every source of public feedback, the response we're heating has been overwhelmingly positive. People feel safer, more secure than they have since 9/11. And that speaks volumes.

We're continuing with the Explosives Detection System (EDS) installations in commercial airports. Those are the huge, SUV-sized machines that are often in the airport lobbies. We still have a few more to go. Then, we need to go back to the airports and help deal with the problems of traffic flow and possible security risks caused by having that massive equipment crowding the lobbies and ticketing counters.

We continue to manage the award and distribution of federal grants for port security and transit initiatives. Our Office of Maritime and Land is developing the criteria for vulnerability assessments to study railway, pipeline, and highway transportation risks.

The aviation piece under TSA's purview, while highly visible, is still that one piece-one pillar, if you will, holding up the immense universe that is the national transportation system. I envision the system as being a four-by-six matrix, with the six modes of transportation--aviation, maritime, highway, rail, transit, and pipeline--constituting one axis of the grid. The other axis comprises people, cargo, infrastructure, and preparedness to deal with a terrorist act.

The intersection of these various blocks on the matrix and their relationship to each other have enormous implications for the whole transportation system and--as it affects your business--how industry needs to rethink and transform its own operational models in the post 9/11 security environment.

In March, we moved from the Department of Transportation to the Department of Homeland Security. We expect to complete a National Transportation System Security Plan as an overarching vision of where we need to be--how we're going to get our arms wrapped around this enormous transportation security challenge.

A national strategy for the entire system will articulate fully the security map of domain awareness, prevention/protection, response/restoration, and consequence management. Each of these steps is essential, not just for some conceptual policy-making government model, but for the very real plans that you need to bring to the corporate table.

If I can step back just a moment, I'd like to put a framework around this notion of transforming the transportation security picture into something dynamic and fully responsive--developing a national strategy that is threat-based and risk-managed.

As you know, a few days ago the world marked the second anniversary of the cataclysmic attacks of September 11, 2001. The attacks were not only physically and emotionally damaging to the country, taking with them 2,792 innocent men, women, and children, but they were a bath of ice cold water thrown on our perception of national security.

We had just experienced somewhat of a 12-year respite from the social, economic, and military upheavals that began on the first Black Tuesday, the stock market crash of 1929 and subsequent Great Depression, and ending with the fall of the Berlin Wall in 1989--a symbolic end to the Cold War. That 60-year period in perhaps the bloodiest century in history was fraught with the anxiety of living perpetually on the edge of annihilation.

Even through the brief Gulf War in 1991 and conflicts in Bosnia and Somalia it seemed history had changed. The economic boom of the euphoric '90s followed, we were building wealth as a nation. We had become complacent to the threats incubating around the world. But the signs were there.

In his new book, Why America Slept, author Gerald Posner suggests that many indications and connections that were missed for years could have forestalled the 9/11 attacks. We all remember the remorseful review of why we didn't "connect the dots."

Posner asserts up front that we didn't notice when some of the most prominent Islamic extremists moved to the US and set up operations just across the river from the World Trade Center. One of these radicals, [Sheikh Omar Abdel Rahman] issued a fatwa, a religious order, urging his followers with this chilling message:

   ... cut all links with the United States.
   Destroy them thoroughly and erase
   them from the face of the earth. Ruin
   their economies, set their companies on
   fire, turn their conspiracies to powder
   and dust. Sink their ships, bring their
   planes down. Slay them in air, on land,
   on water ...

Perhaps the most important lesson we've learned from 9/11 is how unaware and vulnerable we were, and many would say still are. We had lost track of the threat inventory.

We learned we have a new enemy with no borders, no flag, no president, no status, no identity. All we know is that this enemy has a virulent hatred of anything western, and the United States specifically.

The tools of the trade from the Cold War are obsolete. The bomb, the old intelligence liaisons, the tactics and consequences of mutual destruction which worked against the Soviet Union--and which we've never had to use--don't work against this enemy. The old five-minutes-to-midnight Dr. Strangelove clock has been replaced by Secretary Ridge's alert level index.

And so in the new post-9/11 world--with its constant specter of terrorism--we have to rethink our strategies of defense and security, and transform our entire belief system about what is appropriate and sufficient in protecting ourselves and our economies and every aspect of our national critical infrastructure.

As our larger mission at TSA, we view transportation security as an overarching program with aviation as only one component. We also realize that nowhere within the transportation security paradigm is a single silver bullet. So our ever-evolving challenge and strategy includes a system of systems with integrated, responsive, non-redundant functions, which are designed to work together within an information-sharing environment to close off terrorist opportunities. These are safeguards beyond passenger and baggage screening such as hardened cockpit doors, training pilots to handle firearms to protect the cockpit, and perimeter security (cameras, fences, and patrols).

Our notion is simply to take advantage of this Law of Aggregate numbers by sequencing these systems elements as a series of obstacles any terrorist would have to clear in order to accomplish his objective. Each of these elements has been developed carefully with attention both to security and customer service and minimum impact on the flow of commerce.

The system-of-systems also includes several technology-based initiatives, developed by some of the best of private industry.

Some of these new tools in the system-of-systems box include the Transportation Worker Identification Credential (TWIC) card and the Computer Assisted Passenger Pre-Screening System or CAPPS II.

The first, the TWIC card, we envision will be carried by workers in all modes--trackers, longshoremen, rail and transit employees. This initiative, which is part of the Maritime Transportation Security Act, will combine a background check against FBI records along with personal identifiers such as biometrics, to positively authenticate the identity of the employee. TWIC will be issued to workers requiring unescorted physical or logical access to secure areas at airports, loading docks, depots, and other vulnerable points. Again, close down the opportunities.

CAPPS II is another component in the aviation security system-of-systems. CAPPS II is a limited automated passenger screening system. Its purpose is to authenticate identity and quickly analyze the security risk of individual airline passengers.

CAPPS II will rely on commercial as well as government databases to screen passengers. One concern has been that erroneous information could find its way into the system.

To address that concern, we will have a Passenger Advocate's Office to help air travelers who believe there may be a problem.

CAPPS II is a narrowly defined system that collects as little information as possible while still fulfilling its security mandate. Except when terrorists or those with terrorist connections are identified, even that information will be discarded shortly after a flight. For the vast majority of passengers, CAPPS II will be less intrusive while making sure that the person you are sitting next to on a flight poses no security threat.

I want to draw your attention to some widely-distributed but incorrect reporting on CAPPS II. A Washington Post article suggested that 8 percent of air travelers would likely receive heightened--or secondary--screening and 1 to 2 percent would be prohibited from boarding. Although we won't know with absolute certainty how many passengers could be impacted until the system is fully tested, we expect only 3 to 4 percent to be identified for secondary screening and an infinitesimally small number to be actually prohibited from flying. That net result would be a significant reduction from numbers currently experienced, especially those identified for secondary screening, and especially on certain flights where CAPPS 1, the current system, projects over 50% percent selectees.

WHAT CAPPS WILL BE:

* A government owned and operated risk assessment tool.

* A tool that is scalable, flexible, proven, and consistent.

* A leveraging agent to make other elements in the system of systems better.

WHAT CAPPS WILL NOT BE:

* It will NOT be data mining.

* It will NOT be profiling.

* It will NOT be a database.

* It will NOT be the end of all civil liberties!!

But it is the best solution we've come up with to make sure that a terrorist, whether an American citizen or a foreign national, does not get onto a plane when he or she has a known record and history of activities that could be a threat to other passengers and our homeland security.

By establishing a new Cabinet level department, the President sought to transform the security environment for all (14) sectors of our national critical infrastructure--that is, food, water, energy, finance and banking, communications, etc., all the way to protecting national icons such as the Golden Gate Bridge, Mount Rushmore, and the Statue of Liberty.

The key to this security lock is shared information and intelligence, shared and analyzed by the intelligence community, by DHS's agencies and then passing that information onto the local level--law enforcement, first responders, and industry as necessary, to optimize our collective ability to prevent, protect, respond, restore and deal with consequence management.

KNOWLEDGE IS POWER

This information sharing is to be coordinated through DHS's Information Analysis and Infrastructure Protection directorate. We'll look to IAIP for the Homeland Security Vision as it forms the basis of a national strategic plan for security, and as that guides TSA's National Transportation System Security Plan.

Part and parcel of developing a successful national strategy--as it pertains to transportation of people or cargo--are the alliances we're forming with the private sector, non-partisan associations, and other stakeholders.

I've had a few conversations with NDTA's directors--pleased to visit with Ken Wykie last week--about building government/industry partnerships through NDTA. There are terrific opportunities for TSA-NDTA alliances through the Association's airlift, sealift, and surface committees. I believe that if we grapple with each of these modes one-by-one, we'll be successful in putting together a plan that will consider both the commercial and homeland security agendas.

The relationship between TSA and NDTA will also allow us to leverage the expertise of your membership. This will provide a forum through which to receive input from you as NDTA stakeholder constituents on key projects, especially in regard to threat assessments and evaluations. Our partnership will open up areas of cooperation to further the exchange of ideas, best practices, and access the expertise of industry.

The leverage that can come from our partnership will help enormously to transform transportation security from a well-intended notion to a very real capability.

A moment ago, I said "Knowledge is Power." That well-known phrase was originated back in the 17th century by Sir Francis Bacon, whose innovative ideas were transformational to scientific thought. He also said something else, just as true and just as relevant today as it was 300 years ago, "He that will not apply new remedies must expect new evils; for time is the greatest innovator." There are new evils, new threats, and new tactics for the 21st century. We look forward to working with our partners in NDTA and industry to achieve transformational remedies to provide the security of our transportation system.

INDUSTRY SECURITY ROUNDTABLE OVERVIEW

by Sheree Callahan, MSC Public Affairs

Mr. Gerald Davies, EVP, COO, Kansas City Southern; Mr. Butch Day, Director of Security, Yellow Corporation; Mr. Eugene Pentimonti, VP, Government Affairs, Maersk Sealand; Mr. John Shoemaker, VP Corporate Development, Matrics, Inc.

RAILROAD. MR. GERALD DAVIES

* Security plan

--Must have common procedures in place.

--After 9/11 we teamed up with American Railroad Association.

--Set in place "Spook" groups out of Washington, DC, inspected how we are on security and made recommendations.

* Challenges

--Containing product floor.

--300,000 miles of track.

--6,000 major bridges.

* At the end of 2001, we had a security plan in place that was reviewed by the Department of Transportation. It has a four-level alert plan. We have never been at an alert stage since the plan was put in place.

* Threat information for the rail industry comes from one source and government gets information on the rail industry from one source.

* We talk with customers about our logistics plan.

* We have learned lessons. We received a threat and closed down access to our hazard material sites. This also closed access to needed chlorine for water purification. We have to balance business functions with security.

* Areas for improvements

--Customers giving proper documentation of materials insides, so they can be handled properly.

--Improve the act of tracing cargo.

--Know which shipment needs to be secured.

--Restrictions on information of a shipment's whereabouts in transit.

--Tighten down on making sure we know where any shipment is at any given time.

--Had to tighten down on people riding the rails very quickly after 9/11.

* Training Response

--Get employees trained on dealing with hazardous materials.

--Employees are learning what their duties are when it comes to security.

MARITIME, MR. EUGENE PENTIMONTI

* There has been radical change in security for the maritime industry. We are learning to define the problem and we still have a long way to go.

* The industry has struggled for attention from leadership at the Department of Transportation. They were more interested with the airline industry. We need the resources and leadership to succeed.

* What is the vision for the industry?

--Containers are not the problem.

--Our improvements must come in the processes and procedures not necessarily technology.

--We need to know what's in our containers. We need the government's help.

--Without Government intervention, we could get just bits and pieces of technology.

--The cost of adding security measures hasn't been great. It hasn't hurt productivity either.

TRUCKING MR. BUTCH DAY

* Support from the top to bottom is required to have an effective security program in place.

* Yellow has the largest security force in the LTL sector.

* I believe in a grassroots security plan. We must educate our employees that are on the frontlines. If your employees are not aware, your security plan will fail.

* We have to remember that it was a truck driver that caught the DC snipers.

* We also have 30 investigators throughout US. They meet with management daily to discuss security issues.

* You must also have someone in your organization that is making security policies and procedures. They must make them reasonable so they are not hindering business. You must also have something in place that protects company employees first.

* We also work with Human Resources.

--We've developed a two-prong process. HR does the security checks and if there is a problem, we do the further investigation.

--Employees must display proper identification when they are on the premises and dealing with the customers.

--We have a 24-hour security system in place.

RFID TECHNOLOGY MR. JOHN SHOEMAKER

* Everything going to CENTCOM has RFID. This is a change from Desert Storm. RFID tags can be read upside down with 100 percent reliability at 20-30 feet away.

* 1,000 RFIDs can be read at one time. Even at 5, 15, 100 mph.

* Tags cost less than $.25-$.50 and can be shaped differently.

CURRENT CHALLENGES AND TRANSFORMATION GEN JOHN HANDY, USAF, KEYNOTE SPEAKER

by MSC Public Affairs

Gen John Handy, USAF Commander USTRANSCOM and Air Mobility Command

TRANSFORMATION

* DoD transformation started in 1986 with the Goldwater-Nichols Reorganization Act.

--Highlights.

--Reorganized DOD and strengthened civilian authority.

--Charged Combatant Commanders to accomplish missions of unified commands, with authority commensurate with his responsibilities.

--Encouraged more efficient use of defense resources and enhanced effectiveness of military operations.

--Legacy of Goldwater-Nichols.

--Clearly achieved some positive results.

--USTRANSCOM impact: authority extended to both peace and war based on successes in Gulf War.

--BUT ... More work to do on optimizing operations/resources.

* SECDEF has reenergized transformation within DoD to achieve the efficiencies and effectiveness outlined in Goldwater-Nichols.

--Directed by the President to fashion a new approach for DoD.

--Requires us to develop forces and capabilities to quickly adapt to new challenges and unexpected circumstances.

--Six transformational goals: protect homeland; project power in distant theaters; deny enemies sanctuary; protect our information networks; maintain unhindered access to space and protect our space capabilities from enemy attack; and move from threat based defense to capabilities based.

* SECDEF's vision demands revolutionary change within Department.

--Gives us great opportunity to transform DoD distribution.

* Why do we need to transform distribution?

--Commercial industry supply and transportation functions historically separated.

--1980's-Industry changed to meet the customer demands for better service.

--Integrated transportation and warehousing functions into one supply chain--one single entity accountable for managing distribution system--today's 3PL's and 4PL's.

--Not true for DoD--still stovepiped.

--Multiple distribution process owners: Service the Defense Logistics Agency, Combatan Commanders, and USTRANSCOM. Each optimizes its segment of the distribution pipeline at the expense of the overall DOD supply chain.

--Seams between supply and transportation processes.

--Multiple hand-offs results in loss of ownership/accountability.

--Multiple, non-integrated information systems

--No single process owner to direct DoD distribution.

--Results in sub-optimized distribution system.

--Customer loses visibility of cargo and trust in distribution system.

--Assets are requisitioned multiple times.

--Lack of predictive capability--results in reactive vs. proactive system.

--Must work through a number of organizations and competing processes to re-direct or re-prioritize changing requirements.

--Numerous reports, studies, and books echo these deficiencies.

--"Task Force could not find anyone in charge of sustainment logistics for the warfighter." (2002 DSB, Post OEF L/L)

--"No single face to customers thus fragmenting accountability for customer satisfaction." (2002 GAO report)

--Bottom line: Need one person in charge to lead DoD distribution.

* We expect letter from SECDEF shortly appointing USTRANSCOM as Distribution Process Owner.

--Responsibility and authority to supervise the execution of the end-to-end strategic distribution process.

--Improve overall efficiency and interoperability of distribution related activities.

--Overarching goal is to provide war fighter with support to enable him to focus on fighting the war, not how to move supplies.

* What's next? Pending formal designation as DPO, USTRANSCOM has the following plans.

--Deliver charter to SECDEF outlining distribution process owner responsibilities and authority.

--Develop Communication plan to inform and collaborate with distribution stakeholders and worldwide customers.

--Establish joint, cross-Service Distribution Transformation Task Force to develop long-term solutions.

--Develop initial "top 10" list to target for process improvement.

* Examples of "target areas."

--Establish global distribution architecture and information technology capabilities.

--Immediately designate a distribution CIO with authority necessary to develop a system to provide TAV/ITV.

--Expand the DTS enterprise architecture to include both supply and transportation processes.

--Establish a Distribution C2 structure to provide a single point of contact for the war fighter.

--Transition our Joint Mobility Operations Center into a Joint Distribution Operations Center to provide effective E2E command and control.

--Create a distribution C2 culture that takes into account warehousing and transportation processes.

--Collaborate with the Joint Deployment Process Owner to synchronize deployment and sustainment.

--Build a realistic & executable sustainment TPFDD.

--Enhance the sustainment planning by providing a more timely and accurate predictive capability.

--Integrate strategic distribution processes with theater distribution processes.

--Develop synchronized surface & airlift schedules within the CONUS and the theater for the movement of cargo from source of supply to designated theater distribution point.

--Collaborate with the war fighting commanders to formalize a standard theater distribution structure.

--Improve funding and budgeting processes.

--Re-engineer the supply and transportation billing processes to provide customers with a single bill for distribution services.

THE WAY AHEAD

* DPO supports the spirit of Goldwater-Nichols and the SECDEF's vision on transformation.

* NDTA, USTRANSCOM, and all distribution stakeholders share a common goal and responsibility for achieving this vision.

--Value your commitment to support DPO.

--Continually look to you for your valuable expertise--many of our ideas come from your thoughts and ways of doing business.

--NDTA has a stake in the ultimate success of this transformation endeavor.

CLOSING

* Grateful to lead USTRANSCOM during this time of unprecedented transformation.

* In closing.... Heard about the information superhighway... now we have the opportunity to jump on the distribution superhighway.

THOUGHTS FROM THE MOTIVATIONAL SPEAKER MR. MARK SANBORN

by Sheree Callahan, MSC Public Affairs

Mark Sanborn is the President of the National Speaker's Association and hails flora Colorado. He describes himself not as a motivational speaker, brat as a leadership educator. He addressed the audience with tips on/row to help anyone manage change in life or the workplace. The following are highlights from his presentation at the 2003 NDTA Forum and Exposition.

* There are two ways we can address confusion.

--The negative way is cynicism and positive is curiosity.

* Leaders must stay open-minded, but not fatalistic.

* One must also "Love your business a little more than your competitor."

* 3 things leaders must have to make an organization successful.

--Must love what you do.

--Must love who you do it with.

--Must love who you're doing it for.

* Learning is remembering what's important. The challenge is unlearning the solutions and practices that are obsolete. Continuous learning is key.

* It also doesn't matter what the right answer to a question is if you're asking the wrong questions. For example, instead of asking what's the meaning of life, ask what gives my life meaning?

* Every organization should allow their leadership to opt out with no shame. There are so many burned out leaders who shouldn't be in leadership anymore.

6 FOCAL POINTS

* Check which way you're pointed or take radical responsibility.

* Too many excuses.

--Quit making excuses, no matter the circumstance someone is going to win.

--We must move from why me to why not me.

* Work together.

--We should be asking our colleagues here: What is the best idea you've had since I last saw you? We must tap into our co-workers and customers' experiences.

4 Cs

* Commitment: Leadership must take the first step in order to change. Employees watch leaderships' actions more than they listen to what leadership is saying.

* Communication: Nausea effect--if you're tired of saying it, you're probably getting your point across.

* Consequences: When you give people a choice to change or not, people will opt not to change. Change must be mandated.

--Also, reward correct behavior.

--Leadership must have the ability to inflict necessary pain.

--The high pain threshold brings people to change by necessity.

* Concern

--Leadership must be empathic to the pain that initially comes with change.

BE FLUID AND BE FIRM

* Be firm about your values, but be flexible about the rules.

* When values are clear, decision-making is easy.

SHELF LIFE THEORY

* Still dealing with a problem year after year. It may not be an important problem or you have not developed any plan to change it.

* Knowledge is useless until it's put into action.

* "Refuse to loose."

FORUM EDUCATIONAL PROGRAM

The Following are Summarized Highlights of the 2003 NDTA Forum Track Sessions

ACQUISITION REFORM

by Chris Monachino-Perez, Yellow Transportation

Panel Members:

Col Jan Frye, MTMC

Mr. Don McKay, APL 

Mr. Jerry Ellis, Delta Airlines

Facilitator: Gen. William Turtle, USA (Ret.)

Anyone who has been involved in the purchase or sale of goods and services to the Department of Defense is aware of the transformation in processes just over the past few years. This panel addressed those changes. We began with Gen. Tuttle briefly introducing the topic at hand then introducing the participants.

Col Jan Frye reminded us of the Best Value Acquisitions, Strategic Sourcing Awards and the Task Order Contracts of the past. In looking towards the future, Col Frye explained that by 2005, 50 percent of the government contracts will be Performance Based. These contracts require DoD to specifically identify their needs, then it is up to industry to determine how best to operate in order to fulfill those expectations. Through the use of Performance Based contracting, proven performers will be afforded longer term contracts saving both DoD and Industry time and money previously spent developing and responding to bids.

Don McKay from APL brought an Industry perspective to the discussion. Through his position with APL, he has found the MTMC purchasing process to be fair. Their purchasing requests contain detailed requirement descriptions. Communication is improved through the use of briefing sessions and post-award feedback. Mr. McKay also shared recommendations that would help transportation providers bring the most competitive prices and services to MTMC. They included a request that MTMC provide more volume detail for the locations involved in the bid. It was also suggested to include sufficient lead time at bid announcement as well as when the bid is amended, affording providers sufficient opportunity to "reconfigure the solution.

Jerry Ellis from Delta Airlines was our next panelist. Mr. Ellis discussed the success of the "City Pair" program now in place. When it started there were 16 city pairs being serviced by 2 airlines. Today, there are 6000 city pairs and 14 airlines. He points to quarterly partnership meetings between Industry, MTMC and GSA as being the key to success.

In closing, Col Frye provided the website for the Defense Acquisition University, www.dau.mil. Specifically at www.dau.mil/resources/Acquisitionlinks.asp#Reform, Industry can learn of new acquisition directives and initiatives sponsored throughout the Department of Defense.

TECHNOLOGY--THE GREAT ENABLER

by Chris Monachino-Perez, Yellow Transportation

Panel Members:

Mr. Ken Heitkamp, United States Air Force 

Ms. Karen Cronin, Volpe Center

Facilitator: Mr. Earl Boyanton, Assistant Deputy Undersecretary of Defense for Transportation Policy

This panel focused on technology initiatives that support global distribution and enhanced security. Mr. Boyanton began our discussion by introducing the "Future Logistics Enterprise Vision." This vision focuses on continuous improvement and effective harmonization of logistics systems and information technology systems in support of the warfighter. Mr. Boyanton discussed the DoD's implementation of the Business Management Modernization Program that will be used to realize their vision. Through that program, Business Enterprise Architecture was developed, leading to streamlined processes and re-usable software/hardware code. BEA is being implemented in many areas of DoD, including Logistics, Acquisition and Procurement, HR Management, Finance and Accounting, and Strategic Planning.

Ken Heitkamp, Technical Dir., HQ Standard Systems Group, USAF, was the next panelist. Mr. Heitkamp shared a slide with us that visually represented the complexity of the Cargo Movement Operation System (CMOS). Feeder systems include DFAS, PowerTrack, GFM, GTN, and no less than 19 other systems. Mr. Heitkamp commented that some of the Air Force's greatest successes have come from their partnership with Industry. He pointed to the Online Vehicle Information Management System (OLVIMS) and its newly updated Dispatch module as one of those successes. The use of the Internet will be vital to the use of other cutting edge systems for the Air Force. From the Enterprise Asset Management System to the Global Combat Support system, Logisticians must have access to data from anywhere in the world. Mr. Heitkamp closed by sharing USAF's 2021 Transportation Goals and Expected Outcomes including improved logistics lead times, reduced operating costs and reduced inventory in motion.

Karen Cronin, CIO of the Volpe Center, finished our session. She made an announcement to the audience soliciting Industry for "good ideas." She identified the Department of Transportation's need for new ways to increase the security of the nation's pipeline system, such as new assessment tools and digital mapping. Hazardous Material placarding is another area where good ideas are needed. From Global Positioning vehicle system management tools, to more rugged computer equipment and longer lasting batteries there is unlimited opportunity for entrepreneurs. For those interested in more information on the Volpe Center, you can logon at www.volpe.dot.gov.

CIVILIAN AGENCY UPDATE

by Chris Monachino-Perez, Yellow Transportation

Panel Members:

Ms. Ann Gibson, US Department of State

Mr. J. Dwight Young, US Postal Service 

Mr. Scott Tiedt, GSA FSS 

Facilitator: Ms. Becky Rhodes, Deputy Associate Administrator, Transportation and Personal Property Policy, GSA

This panel started off on a "sweet" note with Ms Rhodes sharing a large bag of Tootsie-Pops with the audience. Ms. Rhodes began the panel with participant introductions and a brief description of her department, created only eight years ago.

Ann Gibson, Chief, Transportation Operations Branch, US Department of State, explained that her department's mission is to assist in the procurement of goods and services, provide vendor management, manage the transportation of materials including employee possessions around the world, warehousing, inventory management and the worldwide management of the vehicle fleet. DoS has agents in Baltimore; Seattle; Iselin NJ; Miami; Antwerp, Belgium; and Brownsville, TX. DoS also has a warehouse in Hagerstown, MD, for long term storage and an office at Dulles Airport for secure shipments, import/export shipments and to act as a customs liaison for their customers. Ms. Gibson discussed the Inspection, Auditing and Claims functions providing very impressive numbers of success within those organizations. Ms. Gibson concluded by advising how to do business with the DoS. From Freight carriage to packing services, contact Louis Roque at [e-mail] or Shawn Griffin at [e-mail] if you are interested in participating in these opportunities.

Our next panelist was J. Dwight Young, Manager, Transportation Portfolio, US Postal Service. Mr. Young explained that the USPS is a "tweener" organization, not an official US Government entity, nor a totally commercial company. The USPS Transportation Portfolio supports "Transportation to the world everywhere-every day." In support of that mission, USPS purchases $2.2 billion in air transportation, $2.2 billion in truck transportation, $1(1 Million in ocean transportation and $190 million in rail transportation annually In addition to these conventional transportation methods, USPS also purchases the services of hydroplanes, snowmobiles, personal cars, wheel barrels and even mule service if that is what it takes for mail delivery USPS is using innovative means to support their customers, pursue aggressive cost management and develop a diverse workforce and supplier base.

For more information, log on at www.usps.com/purchasing/transportation/transportmenu.htm.

Mr. Scott Tiedt, Chief, Transportation Programs Branch, GSA FSS, closed out our session. Mr. Tiedt is involved in the development and implementation of GSA's Transportation Management Services Solution (TMSS). TMSS was developed to provide both GSA Shippers and Transportation Providers the ability to execute all transportation transactions in real time through the Internet. TMSS functionality includes rating and routing, competitive pricing from known, quality carriers, reporting capabilities, mailing lists and it supports Electronic Bills-of-Lading. The new system went live on June 30th providing GSA shippers with quote and audit functionality. TMSS is a user friendly, web-based system that is reliable, secure, and affordable to the Agencies and TSP's. The next TMSS release will include rate tiling, online shipment booking, bill-of-lading creation, pre- and post-audit functions, online payments and claims filing/tracking. In closing, Mr. Tiedt announced the 2004 AMSA and GSA Household Goods and Freight Conference, February 2-5, 2004 at the Hyatt Regency in Atlanta, GA. To register you can contact Felicia Rogers at [e-mail]. Mr. Tiedt also provided the TMSS website for interested providers, www.moveit.gsa.gov. Mr. Tiedt can be contacted at [e-mail].

DEFENSE TRANSPORTATION OUTLOOK

by Chris Monachino-Perez, Yellow Transportation

Panel Members:

Mr. Rick Haynes, MSC

Mr. Dale Heugen, Air Mobility Command

Facilitator: Mr. Bill Lucas, Deputy to the Commander, MTMC

This standing-room-only session began with Mr. Lucas discussing the goals of being a one-stop shop providing enhanced movement planning and proactive movement management. He cited the significance of the partnership between MTMC and Industry as a key to the US success during Operation Iraqi Freedom. Due to proactive communication and confidence in Industry's support, he said, "Never before has a military gone farther, faster, with more lethality." Mr. Lucas shared new business processes encompassing enhanced in-transit visibility (including Hazmat) and personal property initiatives, the STMS and IRRIS systems, and enhanced container management systems. Enhanced security for AA&E water port and rail shipments was discussed. Additional security enhancement being pursued included advanced trailer tracking and monitoring systems, electronic locking devices for trailers/containers and the development of the Strategic Munitions Distribution Network.

Mr. Rick Haynes, Executive Director, Military Sealift Command, was the next panelist to address the group. Mr. Haynes shared MSC missions of contributing to the sustained forward presence of combat logistics forces. Through the use of special mission ships, MSC provides surveillance, scientific support, and research and development. They provide efficient and effective sealift in peace and war. Mr. Haynes discussed the MSC's use of Civilian Mariners for Sailors (CivMars). Using civilians for more of the back of the ship functions allows our military personnel to focus on being our "tip of the spear." We can expect a concentrated effort towards more of these types of mixed crews. Also on the horizon for MSC is the use of higher speed vessels, improved cargo container systems allowing for specific containers to be inspected both randomly and selectively. We can expect better underway replenishment and improved Force protection. Mr. Haynes also shared some of the needs of MSC. Industry can support MSC by providing US-flag, militarily-useful roll-on and roll-off equipment, packaged food systems, expanded maintenance capabilities in port, effective hull perimeter lighting, non-lethal deterrence systems surrounding our ships, tug and garbage barge services, and "Liberty Launch" providers for our Sailors on leave.

Next to speak was Dale Huegen, Contract Airlift Division, Air Mobility Command. Mr. Huegen shared with us that this year, AMC will contract over $2.5 Billion in passenger international and domestic charters, worldwide and domestic freight and express package transportation, air taxi, air ambulance, perishable cargo transportation, foreign airlift and Alaskan airlift in support the warfighter. Mr. Huegen identified the prerequisites for partnering with AMC, such as the carrier must be an US-Flag carrier, they must possess FAA 121 or 135 certification, and transport category aircraft must be offered to the Civilian Reserve Air Fleet. Interested carriers can learn more at www.eps.gov (electronic posting service) or can go to www.ccr2000.com to register as a contractor.

OPERATION IRAQI FREEDOM--WE WERE THERE

by Major Johnnie Edmonds

Panel Members:

Brig Gen (S) Kip Self, USAF, AMC

Col Robert Allardice, USAF

COL Victoria Leignadier, USA, MTMC

CPT Jack Hearn, US Merchant Marine

Facilitator: RADM Chris Ames, USN

Brig Gen (S) Self highlighted, with numerous examples, the criticality of the American civilian transportation industry and it's ability to answer the nation's call to arms. He noted several of the challenges that were faced and overcome in Operation Iraqi Freedom (OIF). Challenges ranging from opening of an initial airfield in Kuwait to H3 (Heat, Hygiene and Hussein) to multiple Scud missile attacks in the 1st 18 days of the operation to the outfitting of civilian contractors with Nuclear Biological Chemical (NBC) gear. Additionally, Brig Gen Self related the battlefield challenges of opening an airport that rivaled the world's busiest airport, to opening of multiple bases to support the battle plan, to supporting the 82nd Airborne Division's mission. He briefly covered some figures regarding the dollars-and-cents of this operation and the amount of civilian transportation industry sacrifice necessary to support this operation. Brig Gen Self recognized the outstanding efforts of the American Service person and the civilian transportation industry. He closed his remarks on the theme of "We are Partners."

CPT Jack Hearn enlightened the group on the time shipping-lines had meeting the requirements of OIF. He also related the experiences of dawning NBC gear multiple times from Scud attacks to the lack of a secure communication system in a combat zone to the cohesion/camaraderie between the civilian workforce and the port soldiers. He ended his remarks with a sincere thank you to the military for Its service and sacrifice to the United States.

COL Robert Allardice provided some of the best footage to make the message real for the civilian transportation industry attendees. COL Allardice related the experiences and significant challenges of conducting the largest military airborne operation since Operation Market Garden in WWII. That was the airdrop of the 173rd Airborne brigade in Northern Iraq during the first stages of OIF.

COL Allardice continually spoke of the outstanding performance of the C-17 Star Lifter aircraft. His message regarding this piece of USAF equipment was very simply put, "We need more." COL Allardice further related the challenges of OIF with a brief example of attempting to move approximately 2000 personnel, 3000 short tons of cargo and approximately 400 vehicles with 100 percent reliability and without anyone knowing about it. COL Allardice closed his comments with three messages, first and foremost this operation would not have been the success it was without the "Great American Heroes; both military and civilian," secondly, "Throughput is Everything!" and lastly "the C-17 is Great!"

COL Leignadier related her responsibilities of command/control and effective operations of all ports used during OIF. She shared with the audience the challenges of dealing with 3rd country nationals, multiple Scud attacks, NBC alerts, inflexible time lines for discharging of vessels in support of the battle plan, conducting Joint Logistics Over The Shore (JLOTS) operations for ammunition and all the while dealing with a fairly significant language barrier. COL Leignadier made light of the fact that she had become very proficient in the area of hand-and-arm signals when dealing with these 3rd country nationals. On a more serious note she stated that it was anticipated that the nationals working the port would desert once combat operations commenced, which was not the case. She also mentioned the involvement of the Kuwaiti Coast Guard. COL Leignadier noted organization integration, extreme weather and the Scud attacks as significant challenges.

At the end of the prepared briefings/statements by the panel members only time remained for two questions. Those questions are as follows:

1. Was Material handling equipment an issue in OIF? Response: Col Allardice: "Not an issue at our airbases."

2. How effective was Intransit Visibility during OIF? Response: Brig Gen Self: "ITV was inadequate for this operation."

INNOVATIONS IN INFORMATION SHARING

by Major Daniel Davall

Panel Members:

Mr. James Sullivan, USTRANSCOM, J2

BG (Select) Paul Capasso, USAF, USTRANSCOM J6

Mr. Gary Williams, Assoc. of American Railroads (AAR)

SHARING INTELLIGENCE AND SECURITY INFORMATION WITH DEFENSE TRANSPORTATION SYSTEM (DTS) COMMERCIAL PARTNERS

BG (S) Capasso spoke about the changing strategic landscape, which is a high threat and high OPTEMPO. He also mentioned that there is a move from the Global Transportation Network (GTN) to GTN 21. He mentioned six command, control, communications, and computers (C4) imperatives: Cyber Security, Decision Ready Knowledge, Robust Infrastructure, Single Source Truth, Partnership with Industry, and End-to-End Visibility.

USTRANSCOM Commander guidance is to develop a system that is a password-protected website and broaden info sharing to be a "business practice." The goal is that commercial partners are on the same level as military components.

DTS INFO SHARE WEBSITE (PHASE I)

Information sharing will be built around an interactive website, which includes other dissemination and interaction methods. The Info Share Website will build upon TRANSCOM component connections with commercial partners and industry associations. Also, the system will work to identify initial commercial partner Priority Intelligence Requirements (PIRs) and will use unclassified and classified sources, develop "tear lines" and disseminate information at the password-protected, unclassified level to maximize utility.

DTS INFO SHARE (PHASE II)

Intelligence reporting (below tear line) will be disseminated to commercial partners via UNCLAS INTSUMs, SPOTREPs, etc. Classified intelligence reporting will be disseminated to commercial partners via secure phone or SIPRNET. The "Push/Pull" information-sharing concept will be built with continuous customer feedback.

USTRANSCOM COMMANDER PRIORITY

Provide threat intelligence at the same level as the service components receive. The USTRANSCOM J2 and component staffs are engaged in this effort, however, there is no "silver bullet" solution. The goal is to adopt a push/pull system with commercial partners across various systems (Internet, SIPRNET, JWICS). Included among the numerous challenges are the releasability of information and connectivity of equipment (STU/STE, IT systems) as well as funding issues (hardware, background checks, etc.).

DTS CONCERNS

DTS Commercial Partners carry 80 percent of all military cargo. However, in-transit cargoes have little organic protection. DTS Commercial Partners rely on information to avoid and mitigate risk. In-transit cargoes present one of the most "target rich" environments for terrorist attacks--troops and equipment are concentrated and exposed during movement. Military shipments contain weapons attractive to terrorists for follow-on attacks. This includes Category I and II weapons such as Stinger MANPAD and Dragon Antitank missiles. Also, bulk military explosives present an inherent threat to US citizens.

PART OF THE TOTAL FORCE

by Major Johnnie Edmonds

Panel Members:

Vice Admiral David Brewer, USN, MSC

Col Edward Breen, USAF, TACC 

BG Barbara Doornink, USA, MTMC

Facilitator: RADM Chris Ames, USN

Vice Admiral Brewer began his remarks with a recap of how the Global War On Terrorism (GWOT) started and what the facts and figures were as they related to OIF. Vice Admiral Brewer impressively handled specific facts and figures ranging from the number of ships used for OIF, the millions of square feet of cargo shipped, the number of milvans shipped and accounted for to the number of chartered vessels down to the percentage of cargo delivered on US-flagged ships--all without the aide of note cards or slides.

Vice Admiral Brewer closed his comments with three major points. They are as follows: 1) VISA is good, but must be reviewed to ensure it meets the requirements of the GWOT; 2) US Merchant Marine is a good source of capabilities; 3) "I need more US-flagged ships to help the war fight."

Col Breen began his comments with a statistical recount of the activation of the CRAF (Civilian Reserve Air Fleet) program. Col Breen publicly recognized the value of the sacrifice of the CRAF partners. He also went through the activation process and the various decision levels of government necessary to invoke this agreement. Some of the challenges mentioned, regarding the CRAF agreement, were the issuance of NBC gear to the CRAF flight crews, various relevant SOPs for flight crews (e.g., what to do when a siren sounds or what to do when a missile is tracked as heading for your location) and security clearances for flight crews at various air bases.

Col Breen closed his comments with the statement, "CRAF brings tremendous capability to the fight. CRAF is the prime people mover; couldn't do it without the civilian air fleet."

BG Doornink opened her brief with the statement, "We don't go to war without our partners." BG Doornink recognized multiple successes during OIF, some that were highlighted were:

* "Transportation industry delivered unparalleled success in OEF and OIF."

* "OEF and OIF delivered more lethality further forward, faster."

* "Rail was a huge success story."

BG Doornink identified several challenges in her remarks. They were:

* "Immature ITV infrastructure."

* "Secure communications with rail assets."

* "Redeployment requires ITV-AV expansion."

Doornink followed the challenges with the remark that a "Better infrastructure must follow to ensure the Transportation industry is able to keep pace." BG Doornink closed her comments by stating that the "DoD pipeline is the warehouse. Our commercial partners are incredibly important to our success."

At the end of the prepared briefings/statements by the panel members only time remained for one question:

1. What difficulty was experienced regarding response time?

Response: Vice Admiral Brewer responded that the re-flagging of a ship was an issue during OIF.

RADM Ames concluded the session by stating, "Through our strategic partnership we achieve marvelous success. Our National Security Strategy and National Military Strategy require us to respond rapidly; collectively we cannot be beat."

SUPPORT TO THE WARFIGHTER

by Major Daniel Duvall

Panel Members:

MG Robert Dail, USTRANSCOM

Mr. Jim Havelcbek, American Trans Air

Mr. Eric Mensing, American President Lines 

Mr. Daryl Deel, R & R Trucking

Facilitator: RADM Chris Ames, USN

OPERATION ENDURING FREEDOM/ OPERATION IRAQI FREEDOM (OEF/OIF)

MG Dail cited the 101st ABN DIV movement from homestation at Fort Campbell, KY, to the area of operations as a multi-modal transportation success story (motor, rail, airlift and sealift). In addition, the 4th ID movement from homestation to the area of operation was another success story. He stated that the decision had been made to load 4th ID cargo and equipment on 33 Cape class vessels instead of Large, Medium Speed, Roll-on/Roll-off (LMSR) vessels because the LMSR was too big and had too much draft for the Seaport of Debarkation (SPOD). Fortunately, the decision to use Cape class vessels prevented the LMSRs from being "tied up" awaiting discharge--the Cape class vessels were "tied up" for weeks while an alternate SPOD was determined.

MOTOR CARRIER SUPPORT

Mr. Daryl Deel, R & R Trucking, stated that motor carrier support handled 65 percent of Arms, Ammunition, and Explosives (AA&E) for OEF/OIF, with commercial rail handling the remainder.

One concern Mr. Deel expressed was the shortage of safe havens to stage loaded trucks and trailers (Blount Island, FL, is an example). Also, he expressed concerns over inadequate communications and coordination between shipper and receiver.

RAIL SUPPORT

Mr. Deel covered rail support as well. He stated that most major installations utilized rail service during OIF. One of the advantages mentioned was the ability of rail to cost-effectively move cargo and equipment. However, Mr. Deel stated that a decline in available flat cars is a significant issue that the rail industry and military are currently working.

AIRLINES

Mr. Jim Havelchek, ATA, stated that the airline industry has changed dramatically since the terrorist attacks on 9/11. Because of a lack of business, there has been an unprecedented volunteer of aircraft for military passengers and cargo. He also raised the issue of Nuclear, Biological, and Chemical (NBC) protection for airline crews. He stated that airline employees have expressed concern and want NBC protective gear.

OCEAN CARRIERS

Mr. Eric Mensing, APL, stated that from an Ocean carrier perspective, deployment for OIF was a great success. He raised the issue of NBC protection for the commercial vessel crews.

CONCERNS / ISSUES

Coalition for OIF was weak, unlike Operation Desert Shield/Desert Storm, which took away some flexibility. Commanders changed plans on moment's notice. Also, clearance issues were not anticipated (i.e., contractors could not cross border of Kuwait into Iraq). Problem with commercial containers is also an issue. Troops use the containers for whatever they need (shelters, storage, etc.).

SUPPLY CHAIN SECURITY BEST PRACTICES

by Irvin Varkonyi

Panel Members:

Mr. Michael Wolfe, North River Consulting

Mr. Jerry Peck, Global Trade Management Solutions

Mr. William Cooper, MTMC Transportation Engineering

Facilitator: Mr. Irin Varkonyi, SCOPE, LLP 

The panel on Best Practices in Supply Chain Security reviewed practices which secure public and private supply chains against threats and disruptions. Moderated by Irvin Varkonyi, Supply Chain Operations Preparedness Education, LLP, the session reviewed supply chain optimization and vulnerability as we stretch the supply chain around the world. Increased dependence in outsourcing military requirements to the private sector means increasing DoD's dependency on the integrity of the private sector supply chain. The supply chain covers the range of logistics, procurement and fulfillment functions required to meet customer requirements.

Michael Wolfe, North River Consulting, detailed the role of technology in improving supply chain security and productivity. Technology allows better visibility and control leading to improved security and productivity in the supply chain. Technologies include Automatic Identification (Auto-ID) tools such as biometrics, electronic seals and auto-networking AIT devices, electronic seals and Smart Containers providing protection against intrusion as well as improved asset management and affordability. There are ongoing pilot projects with MTMC and the DTTS 

Smart and Secure Technologies (SST) is an industry initiative of the Strategic Council for Security Technology, building on the DoD's ITV success. Recommendations from SST include keeping technology in perspective, that it is not a magic bullet along with reviewing the benefits, together with the costs of security.

Jerry Peck, Global Trade Management Solutions, focused on the impact of terrorism in the international supply chain. Supply Chain security involves multiple disciplines of information security, physical security, international and domestic logistics, risk and change management, and more. GTMS's SupplySec system brings together Physical Security, Information Security, and Personnel Security, under the umbrella of Policy and Procedure.

Many questions were posed to the audience, questioning their organizations level of effort in having employee background screening for both criminal and credit histories, providing employees with education and awareness training in security, developing an incident identification and response matrix, implementing a dedicated "Supply Chain Security Management Team," performing a process "diagnostic" of existing security policies and procedures and more?

William Cooper, MTMC Transportation Engineering Agency, provided an overview and demonstration of the Intelligent Road/Raid Information Server, a web-based portal integrating transportation data with commercial and military infrastructure to provide DoD with real time tracking capability to improve efficiency and security. IRRIS solves real transportation problems of tracking, national transportation infrastructure readiness and develop a baseline "National Infrastructure Server."

eTRAVEL

by Jamie John

Facilitator: Ms. Denise McShea, SatoTravel

Frank Robinson, Deputy Director of eTravel spoke to an audience of travel industry professionals at the National Defense Travel Forum. He presented an overview of the eTravel program and discussed the collaborative relationship between eTravel and the Defense Travel System (DTS).

eTravel, Mr. Robinson pointed out, was launched as part of the President's Management Agenda and its mission to improve the internal efficiency and effectiveness of the Federal Government. eTravel is a collaborative, interagency initiative whose purpose is to realize the efficiencies, cost-savings and increased service associated with a common, automated and integrated approach to managing the Federal Government Civilian Agency's travel function. It is a government-wide, web-based, world-class travel management service.

These features as well as others, Robinson said, will amount to a 50 percent aggregated savings in the cost of managing civilian agency travel over the next 10 years. Mr. Robinson also discussed the proposed amendment to the Federal Travel Regulation (FTR), noting that when published, use of eTravel will be required, with exceptions, for Federal Civilian Agencies subject to the FTR.

eTravel has been working with DTS since late 2001 to garner lessons-learned and maximize the government's investment. Mr. Robinson thanked the DTS Program Office for its support, commitment and collaboration and he shared the eTravel vision for future collaboration: A single, government-wide business data intelligence capability which could be used to manage vendor contracts in air travel, rail, lodging, rental car and charge card programs.

eTravel will be used in Federal Civilian Agencies, while DTS will be used within the Department of Defense. The primary difference between the two services is that eTravel is a feeder system to agency business systems, while DTS is a fully-integrated component of defense financial systems. Still, the two share functional commonalities. Both will provide end-to-end travel management services and integrate policy compliance into their service. DTS and eTravel continue to explore opportunities to collaborate on the development of services enhancements, such as: business intelligence, permanent and temporary change of station, group travel and conference and meetings services.

The audience at the forum was also interested in how eTravel would support the travel industry. Mr. Robinson answered inquiries as to the nature of the working relationship between the eTravel PMO and industry representatives, such as the airlines, rental car suppliers and hotels. Mr. Robinson said many representatives within those industries have already met with eTravel and the eTravel Program Management Office looks forward to a productive and open relationship with travel industry suppliers.

The eTravel Service is planned to be fully operational during the first quarter of 2004.