New peacetime contract meets wartime needs.

Through improved relations with commercial ocean carriers, the Military Traffic Management Command has incorporated many commercial practices in its contract format and shipping processes in recent years. The Universal Service Contract known as USC04, which began March 1, is a $317 million best-value service contract that provides movement of more than 100,000 containers and about 300,000 measurement tons to nearly 130 countries.

USC04 received significant input from executives at Maersk Line Limited, APL Ltd, Lykes Lines and Farrell Lines (P&O Nedlloyd) on the liner side, and American Roll-on, Roll-off Carrier for break-bulk on the Integrated Product Team, chaired by MTMC. The previous contract, USC03, reduced the number of rates from 25,000 to 10,000 and developed numerous innovative performance features that included time-definite delivery and service to additional trade routes. The expansion of trade routes reduced the number of MTMC One-Time-Only modifications.

USC04 further refined USC03 enhancements. The new contract includes one base year and one option year, which is different from USC03's one base year and six-month extension period. Another aspect is that the 45 customer-related contracts were rolled into a single specialized services section of the contract, but still honors the individual defense shipper's service requirements. The contract guarantees cargoes to ocean carriers for major routes. The new contract also allows Defense shippers to book their cargo directly with the ocean carriers over the Internet through MTMC's web-based direct booking program and stay within the confines of the contract volumes.

Lastly, the scope of the USC04 contract allows for worldwide end-to-end movement of Defense cargo with flexibility to modify the contract to meet unforeseen wartime and national security needs, utilizing a peacetime contract.

Craig Robinson

HQ MTMC