Government Could Save Millions by Clarifying Defense Transportation Regulations

Dépèche transmise le 27 mai 2009 par Business Wire

BUFFALO, N.Y.--(BUSINESS WIRE)--Christopher Alf, co-founder of freight forwarder National Air Cargo, heralded the passing and signing of the Duncan Hunter National Defense Authorization Act (NDAA) as a victory for military vendors, personnel, and taxpayers back in October 2008. According to Christopher Alf, Section 355 of the law was meant to make changes to regulations that had been causing inefficiency, resulting in the potential waste of government funds. However, to date only two adjustments have been made to the regulations in question.

In addition to National Air Cargo, also active in the campaign to get the original law passed were the Air Forwarders Association, American Trucking Association, and multiple independent freight forwarders. The industry had always believed that the AFTRP 5 requirements to move cargo by air only applied to air carriers and not freight forwarders. Freight forwarders had always operated in a mode-neutral fashion.

Brandon Fried, Executive Director of the Air Forwarders Association stated: “The inconsistencies in the Department of Defense and the Air Mobility Command Freight Traffic Rules Publication 5 (AFTRP 5) regulations result in vendor inefficiency. In many cases government contractors are mandated to ship cargo by air when it would cost the government and vendor substantially less to ship the cargo by truck.”

For example, Chairman Solomon Ortiz and Ranking Member Jo Ann Davis in a July 20, 2007 letter to the Under Secretary Office of Defense for Acquisition, Technology and Logistics stated: “Air Mobility Command’s non-conforming regulation appears to cause inefficient business practices and a substantial waste of Department of Defense funds…” The letter continues, “In an example… the AFTRP requirement nearly doubled the costs for one shipper moving freight… [which] resulted in an additional cost to the government of $173,140… this amounts to approximately $250,000 in additional annualized costs to the taxpayer for this one DOD shipper.”

Christopher Alf stated recently that, “At this point, if the government forced all freight forwarders to operate by the previous wording in AFTRP 5, they would be paying millions of dollars more in shipping costs.”

Christopher Alf continued, “I was overjoyed when the legislation was passed back in October. The changes to the regulations allow for government shippers to utilize commercial best practice, which is more cost-effective and allows commercial vendors to charge lower fees. Our troops deserve the most efficient shipment of supplies – medical, combat, and otherwise – so that funds are spent effectively on US conflicts.”

National Air Cargo was founded by Christopher Alf along with his wife Lori Alf, and continues to contract with the government for the delivery of cargo for the Department of Defense. National Air Cargo’s web site is www.nationalaircargo.com.

Business Wire

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