FDTPI Introduction  

The First Destination Transportation and Packaging Initiative (FDTPI) supports the 2010-2017 Defense Logistics Agency (DLA) Strategic Plan to leverage industry capabilities, and realize process excellence by balancing efficiency and effectiveness. FDTPI is an enterprise-wide initiative to reduce acquisition costs for eligible procurements and gain other efficiencies by leveraging the government’s negotiating clout and inherent economies of scale within targeted supply chains. FDTPI targets primarily Class IX material as well as some Class IV and VII materials. Aviation, Construction and Equipment, Industrial Hardware, Land and Maritime are the supply chains participating in FDTPI at the present time.

FDTPI entails the implementation of transportation and packaging concepts approved by DLA leadership in order to transform the DLA business model in the manner in which supplies are transported and packaged. First destination shipments from suppliers to DLA include transportation and military standard (MIL-STD) packaging costs which are “bundled” into the acquisition price of the materiel, obscuring the real cost of the products. FDTPI unbundles first-destination freight (FDT) and packaging (FDP) costs from the acquisition price of new-procurement materiel and utilizes Government personnel or contracted services to provide freight and/or MIL-STD packaging more efficiently than is possible by many DLA suppliers.

FDTPI is designed to generate substantial savings over the five-year Fiscal Year Defense Plan.


Transportation Overview

Contractor Shipping Made Easier

First Destination Transportation (FDT), the movement of material from suppliers to the first military depot or direct to military customer, changed from FOB destination to FOB origin in October 2013. FDT requires the removal of transportation related cost from contractor bids. Contractors need only be concerned with quoting the associated costs of manufacturing their products. Products affected by FDT will be those labeled as Class IX consumables and some Class IV and VII materials destined for CONUS depots and military customers. Supply Chains included in the FDT initiative are: Aviation, Land and Maritime, Construction and Equipment, and Industrial Hardware.

Geography no longer plays a part in DLA contractor opportunities for competitive bidders. Diminishing Military budgets signal a need to reduce cost without sacrificing necessary parts and supplies. Contractors who utilize the change in transportation terms and find additional avenues for cutting cost will find their reward in additional business opportunities.

In uncertain budgetary times, DLA is challenged to decrease costs at the same time as it is also challenged with increasing support to the troops, in both the U.S. and abroad. Taking control of DLA’s Supply Chain allows for better in transit visibility (ITV), improves receiving dock productivity, and reduces safety stock requirements. ITV offers opportunities to consolidate. Loading fewer, fuller trucks increases our effectiveness and reduces our carbon footprint.

Prior to bid submission, contractors should log into and register for Vendor Shipment Module (VSM). VSM is the vehicle by which contractors notify DLA’s transportation team experts that shipments are ready for pickup.  No matter the size or weight, VSM will assess the information provided, assign the carrier best suited for the shipment and notify the contractor of the carrier choice. VSM allows contractor access to their own contract information in order to print a commercial bill of lading, military shipping labels, packing slip, address labels and small parcel carrier labels. For VSM registration and instruction, please use the link listed below.

 A Help Desk is available and can be reached by email at delivery@dla.mil or by phone Mon-Fri 0600-1700 Eastern at 800 456-5507.  For DCMA administered contracts email vsm.shipments@dcma.mil or phone (314) 331-5573 between the hours of 0800-1630 Eastern.

To register for VSM:  https://vsm.distribution.dla.mil


Packaging Overview

DLA has traditionally purchased many items using military packaging.  When military packaging is required, vendors incur costs and lead time when applying MIL-STD packaging.  Meeting MIL-STD packaging requirements can be particularly challenging for smaller businesses resulting in some businesses refusing to do business directly with DLA. These higher costs translate into higher acquisition prices for DLA and its customers.

The FDP program expands the acceptance of the commercial packaging standard developed by the American society for Testing and Materials (ASTM) known as ASTM D3951for inbound new-procurement shipments and for outbound shipments to CONUS customers. ASTM D3951 is already the standard for Direct Vendor Deliveries (DVDs) to DLA CONUS customers and has proven adequate for most general storage circumstances. Certain shipments and materials are still required to be packaged in accordance with MIL-STD 2073-1D.  Labeling and marking requirements are unchanged by the FDP program.

Material purchased into a DLA depot in commercial packaging with a later determined requirement for MIL-STD 2073-1D packaging will be converted to that standard by the DLA depot personnel prior to shipment.

For more specific packaging information see the DLA Land and Maritime Master Packaging Website at
http://www.dla.mil/LandandMaritime/Offers/Services/TechnicalSupport/Logistics/
Packaging/PackWhatsNew.aspx


First Destination Transportation Updates

Become Registered as a Carrier for the Government

Instruction for a transportation company to become registered as a carrier for the government is provided here: https://stallion.eta.sddc.army.mil/ccp/jsp/CCPScac.jsp

Processing Shipments in Vendor Shipment Module (VSM) instruction guide is found here:
www.dla.mil/Portals/104/Documents/LandAndMaritime/ZA/LM_VSMUSERGUIDE20143_151028.pdf

Transportation Contract Clauses

FDT Program Shipments Originating Outside the Contiguous United States:
DLAD 52.237-9058, First Destination Transportation (FDT) Program – Shipments Originating Outside the Contiguous United States (OCONUS)

FOB Origin Government Arranged Transportation:
DLAD 52.247-9059, F.o.b. Origin, Government Arranged Transportation

 
 
Key Links

Document Title
 Description
 Posting Date
FAQs
 		Frequently Asked Questions
 01/22/2016
FDTPI Overview
 FDTPI General Overview
 01/22/2016
Master Packaging

DLA Land and Maritime Master Packaging Web Site


01/22/2016
VSM Process Flow VSM Process Flow
 01/22/2016

 
Contact for More Information

fdtpi@dla.mil