Effect of SDDC’s new fuel surcharge adjustment?By Eric Anders • Aug 23rd, 2012 • Category: *RELOCATION NEWS UPDATES*, Defense Personal Property Procurement Program (DP3), Department of Defense/Military
Anyone in the household goods moving industry who relies on the Department of Defense (DOD) for some or all of their small business revenue should be particularly attentive to the recent announcement by the military Surface Deployment Distribution Command (SDDC) that they intend to change how the defense personal property fuel surcharge is administered next year.
Particularly concerned should be the thousands of local moving and storage agents and independent owner operators who purchase the fuel required to physically pack, move, and store the household goods and personal effects of approximately 600,000 military and government service members each year under SDDC's new 'best value' Defense Personal Property Program, DP3.
While neither group is officially recognized as a legitimate 'transportation service provider', or TSP, in the military's automated Defense Personal Property System (DPS), both parties stand to lose a significant part of the money they rely on to purchase the gasoline and diesel required to operate their businesses.
To help examine the financial impact of DOD's fuel surcharge decision on the military household good moving and storage industry, the conscientious folks at Daycos have started a three part series to explain the results of their internal analysis using their own customer data.
Click here to read the first blog article and join the discussion. Be sure to bookmark the Daycos News site for the next two installments and to stay updated on future developments in the military's attempt to eliminate fuel surcharge payments from DPS.
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