Worldwide Express: Exploiting Existing Contract Provisions to Maximize Savings
Abstract
Commercial carriers have become a mission essential component of the Defense Transportation System (DTS). In order to improve DTS performance and better support warfighters, the Department of Defense has continually explored methods to enhance services obtained from commercial carriers. Worldwide Express (WWX) is one such initiative. United States Transportation Command (TRANSCOM) implemented WWX in an effort to focus on core competencies, maximize a shrinking organic airlift fleet and capitalize on commercial industry efficiencies. Successful contract implementation and contract evolution has enabled TRANSCOM to meet the demanding post 9-11 surge requirements with limited organic assets. Nonetheless, even successful programs have room for improvement. The intent of this research is to determine the potential cost savings of exploiting existing consolidation and service failure claims provisions contained within the WWX contract. Using seven months of DLA Distribution Susquehanna, PA (DDSP) WWX shipments to Afghanistan as a case study, this research project examined if DDSP could significantly reduce transportation expenditures by maximizing consolidation and service failure reimbursement claims. The data indicates that TRANSCOM has left significant money on the table and better leveraging these provisions could easily reduce transportation costs with little or no investment.
Document Details
- Document Type
- Technical Report
- Publication Date
- Jun 01, 2012
- Accession Number
- ADA564139
Entities
People
- Daniel M. Hervas
Organizations
- Air Force Institute of Technology