Inside this Issue Q&A on Alternative Fuels • 10 CDS Unveils New Contracting Site • 16 Perks of Government Contracting • 22 PROBLEM PROBLEM SOLVER SOLVER
8521 Leesburg Pike, Suite 350, Vienna, Virginia 22182 • Toll Free 1-866-543-1661 • (202) 543-1661 • www.nsrmca.org Copyright 2023, National Star Route Mail Contractors Association All rights reserved. No part of this monthly publication may be reproduced – either wholly or in part – without the express permission of the copyright holder. National Executive Board Member at Large Tony Davis Davis Mail Services (844) 864-1767 [email protected] Member at Large Terry Stumpff TN Stumpff Enterprises, LLC (850) 228-5675 [email protected] John Sheehy President Glanta, Inc. (920) 202-5086 [email protected] Eastern Region Vice President Richard Jubb W&L Mail Service, Inc. (434) 736-0036 [email protected] Managers PNT - George Rood [email protected] LDT - Lisa McAbee [email protected] CDS - Ophelia Smalls [email protected] Central Region Vice President Larry Stough Sodrel Truck Lines (812) 282-7941 [email protected] Managers PNT - Tom Brandtner [email protected] LDT - Terry Leckel [email protected] CDS - Paul Millan [email protected] Suzan Porter Vice President C Blackburn, Inc. (845) 756-2261 [email protected] Southern Region Vice President Jeff Lepak Louis V. Lepak Trucking Co., Inc. (405) 236-0944 [email protected] Managers PNT - Ed Zengel, Jr. [email protected] LDT - Tony Davis [email protected] CDS Co-Managers Terry Stumpff [email protected] Cindy LoRusso [email protected] Jami Sweeney Secretary-Treasurer Katlyn, Inc. (301) 643-0212 [email protected] Western Region Vice President Mark Matheson Matheson Trucking, Inc. (916) 685-2330 [email protected] Managers PNT - Jack Khudikyan [email protected] LDT - Dan Rackley [email protected] CDS - Randy Weber [email protected] Caribbean Region Vice President Whesley Sepulveda SN Transport Inc. (787) 564-1444 [email protected] Northeast Region Vice President Richard Salanger Salanger Trucking LLC (315) 422-8867 [email protected] Managers PNT - Peter Martens [email protected] LDT - Cliff Blackburn [email protected] CDS - Clyde Sherman [email protected] 2 NSRMCA
Editorial Managing Editor: Cameron Ayers Staff Writer: Landon Stamper Production Layout: Cameron Ayers Printing/Distribution: Heritage Printing Photography Cover/Back/Feature: Chris Chavira Alternative Fuels Q&A: Darrell Miho February 2023 • Volume 74 Number 2 CONTENTS 6 10 From the Executive Director 4 Giving Clients VIP Treatment 6 Alternative Fuel Leaders Talk Adoption, Look to the Future 10 CDS Unveils New Contracting Website 16 PSBCA Holds That Spouse’s Threats Justify Default Determination Decision David Hendel 18 NSRMCA Rewind 20 The Perks of Being a Government Contractor Cindy LoRusso 22 Upcoming Events 24 Artificial Intelligence Is Here To Help Jack Khudikyan 26 DOE Fuel Indexes 30 President’s Perspective John Sheehy 32 CPI-W: CDS Contractor Index 34 FEBRUARY 2023 3
Dear Star Carrier Readers, We are only two months into 2023, but already I am thinking about the end of the year — NSRMCA’s fiscal year ends in June. By that count, we are over halfway through. Time is passing quickly. An off-cycle fiscal year drives more than the association’s accounting schedule. It also pushes NSRMCA to think about how it can support members and the industry even when the rest of the Postal Service ecosystem settles into a slower pace during post-peak lows. Peak season buzz gives way to the hum of association activity. That is certainly true this year. First, there are the events. NSRMCA Las Vegas was the association’s largest meeting in history by several counts, but three more events will arrive close on its heels. NSRMCA Baltimore, hosted by the Northeastern and Eastern regions, takes place from April 16-17. The National Postal Forum (NPF), in which NSRMCA participates, occurs from May 22- 24. This year it takes place in Charlotte, N.C., and like last year’s NPF, will feature valuable opportunities to engage with the Postal Service. Finally, NSRMCA’s 2023 National Convention occurs from August 6-9 in Washington, D.C. Second, as if three events in the next five months were not enough, NSRMCA is also rolling out new benefits to its members. Starting in March, industry transportation suppliers will learn about a new worker’s compensation insurance program exclusive for NSRMCA members. This pay-as-you-go, no-deposit program is designed to help suppliers of all sizes reduce their costs and provide valuable business support. Two other programs, involving back-office administrative support and driver safety, are being explored. Still more are in the works. Third, capitalizing on the success of the NSRMCA-hosted shark tank experiences in Memphis and Las Vegas, the association will be launching a directory to promote your business with the Postal Service year-round. Unlike nearly any other industry, promoting your business to the Postal Service (regardless of how long it has been an HCR suppliers), is difficult. At times, even impossible. While the shark tank opportunities have been effective in highlighting supplier capabilities and solicitation interests, they are inherently limited by time and geography. NSRMCA’s forthcoming directory will help your business put its best foot forward 365 days a year. Finally, suppliers will start receiving information over the next few months about NSRMCA’s new dues structure (adopted at least year’s national convention). For many, association membership will be more accessible. Dues reform will also reflect a turning point in the association’s history: empowered by renewed financial support, NSRMCA will have the means to achieve its full potential for the industry and the suppliers. Stay tuned. Sincerely, Gregory Reed From the Executive Director Gregory R. Reed [email protected] (202) 543-1661 4 NSRMCA
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Giving Clients VIP Treatment It’s Monday morning and Tamela Colson is already dealing with a fire drill — her term for a brewing crisis. A forklift in her company’s freight section won’t start, so she’s running around town looking for a propane tank to power it. This is just one of many potential crises she has to navigate each week as the manager of VIP Courier Express, a carrier based in Charlotte, N.C. “As a manager/owner, we’re always problem solvers,” Colson explains. “We have to assess what the issues are.” And in an operation as multi-faceted as VIP, fire drills come up regularly. The company handles LRO, LDT and PNT mail delivery contracts, along with freight, warehousing, driver services, logistics and — since it’s in the company name — courier work. Colson started VIP in 2001 with her late brother, Donald Colson, who served as the point person for many of the company’s customers. In the 13 months since his passing, Colson has stepped into the spotlight and out of her comfort zone, which was more on the financial side of things. Now, she says her days are consumed by staff meetings, and of course, lots of fire drills. By Cameron Ayers NO STOPPING NOW 6 NSRMCA
continued on page 8 Colson relays a recent experience in which she discovered that a company truck involved in an accident wasn’t sent in for repair, and had been idling on the lot for over three months. “Now that was a fire drill,” she says with a laugh. Clean Sweep This family-owned business has its roots in another familyowned business: her mother’s cleaning service. When Colson was a child growing up in Davidson, N.C., her mother started a house cleaning service, and routinely enlisted the help of Colson and four of her eight siblings. That was Colson’s first taste of entrepreneurship, and her first time working side by side with Donald, who often helped out. But she quickly realized that pushing a broom wasn’t for her. “We had a lot of houses to clean,” she recalls. “I feel like I’ve been holding a broom since I was two. ... It was a family business and we were the help.” This wasn’t just on weekends, either. “It was literally every day,” she says. “Even when I came home from college, on breaks, even after I graduated, you know, we helped.” Back then, trucking was the furthest thing from Colson’s mind. She had just graduated from the University of North Carolina-Greensboro and was preparing for law school while working in the financial industry. That’s when a family friend suggested, just on a whim, that Colson and her brother Donald go into business together. She relayed the idea to Donald, who at the time was a human resources manager for freight business AAA Cooper, and he loved the idea. It took some brainstorming to settle on the type of business, however. “We kept, you know, throwing around ideas,” she remembers. “Obviously, we’re not going to do a cleaning service. That was not an option” after spending so many years cleaning for her mother. “But we just kind of went back and forth ... and we came up with a niche market, which was same day-next day and expedited [delivery].” In the Beginning Quite by chance, Donald was helping their uncle at his car service business when he offhandedly mentioned the planned formation of VIP to a customer. “And the guy said, ‘Hey, if you start your business, I’ll be your first customer,’” she notes. And that’s just what happened. At the time, VIP was only a five-person operation — herself, Donald and three employees — using a box truck and their parents’ minivan. But through word of mouth and more chance encounters, VIP grew quickly. “We actually started off very fast,” Colson says. “From that one customer [of their uncle’s] that said ‘I’ll be your first customer,’ we made a delivery for him that grew things.” More specifically, Donald made the delivery to Charlotte Memorial Hospital, now Carolinas Medical Center, and “randomly asked a person in the elevator: ‘Hey, how do we get contracts out of this organization?’ And lo and behold, it happened to be the supply chain director! And he said, ‘young man, you just come and see me in my office.’ And it happened to be when they were putting out RFPs [requests for proposal] ... And we just grew from there.” After several years, the company expanded its operations into mail delivery, putting eight trucks on an LDT contract with USPS. And then in 2018, they expanded again into DRO, now known as LRO. And VIP's mail business has been blossoming ever since. Tragedy Strikes In early 2021, Colson got a call from Donald’s wife, informing her he was in the hospital with carcinoid cancer. Colson knew he was undergoing testing, but wasn’t aware of the gravity of the situation, because Donald had kept his fatal condition from all but his wife and children. “I was told that my brother was in the hospital on Tuesday, and Thursday [Jan. 28], he died,” she recalls. “I don’t know if he was thinking that he was going to pass away. It’s like, nobody ever wants to think about that sort of thing.” Colson never had time to properly grieve her brother and business partner’s passing, as VIP was quickly “flooded with calls, texts and messages” from customers who had learned of Donald’s death, many of whom she had to reassure that VIP was not in any danger. FEBRUARY 2023 7
VIP Treatment Continued Tamela Colson takes calls at her office in Charlotte, North Carolina. (Photo by Chris Chavira) “A lot of people [at VIP] stepped up to help, and you, know, had to take on other responsibilities,” she says. “We had a meeting, and [the management team] said they would make sure that I have all the support that I needed.” “It was slow learning” many facets of Donald’s duties, she says, as she had previously handled finances and sales, while Donald had focused more on regulatory concerns and client relationships. “Going through his emails, looking at his calendar, compliance things.” Making Changes In the 13 months since Donald’s passing, Colson has made many changes at VIP. One important one is an expanded focus on mail contracts, which she sees as vital to VIP’s expansion. There was a time when mail delivery was a small component of VIP’s sprawling operation. Now, mail delivery is the company’s primary source of revenue. “We’ve grown our postal business tremendously over [the] last year,” Colson notes. “Freight makes up, at this point, about 15 percent of what we do ... It used to be a majority of our business, but over the last three or four years, we’ve grown our postal business exponentially with LRO contracts.” Another area where she’s shaken things up is meetings. “Donald used to hate meetings,” she said. “He said, ‘I’m not gonna have a day full of meetings. But in order for me to manage people, processes, departments, there is a management routine tied to it.” And in true family fashion, she has her own children — a five-year-old son and a 10-year-old daughter — help out in the office. “My son, he puts postage on mail, he puts the trash bags next to the trash cans ... and then he also puts water bottles in the refrigerator,” she says. “And then my daughter puts timesheets and tax stubs in alphabetical order.” Colson sees it as important to instill that same work ethic in her children that her parents imparted to her. Just without the broom. 8 NSRMCA
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Mark Matheson and Jack Khudikyan share insights on alternative fuels Jan. 9 in Las Vegas. (Photo by Darrell Miho) By Landon Stamper Two postal contractors who are heavily involved in alternative fuels sat down with The Star Carrier recently to share their insights into the future of fleet fueling. Jack Khudikyan — owner of AJR Trucking — and Mark Matheson — CEO of Matheson — were both recently named 2022 Top Green Fleets. The award, presented by Heavy Duty Trucking, honors “leaders in sustainability efforts among all sizes and types of trucking fleets” across multiple categories, according to its website. The two Californians chatted about their experiences with various alternative fuels here and as part of a panel discussion at NSRMCA’s annual Western/Central Region Meeting in Las Vegas. Their answers have been lightly edited for clarity and grammar. Question: How did each of you get involved in alternative fuels? Jack Khudikyan: “It was the Postal Service actually putting it in the [request for proposal] … we started Alternative Fuel Leaders Talk Adoption, Look to the Future 10 NSRMCA
seeing sustainability and what are your green goals? What are your paths to go towards near-zero emission? So, we said, ok, the customer is asking for it and let’s figure out how to provide it.” “Back in 2015, we bought this PACCAR Kenworth demo truck [and] we started testing it on all of our routes to see if it’s going to work. We drove up and down all these points [to] see if there’s actually fuel infrastructure. Are we going to get range anxiety? Do we have service people if we break down?” Mark Matheson: “Our history of natural gas started back in the ’90s. Being from California, we’re very much aware of the requirements that California has about clean air. So, we started looking into natural gas, what it was going to do for us, how could we make it work. By ’99, we had ordered about eight trucks.” “I go back and think about sustainability … Sustainability takes an investment and I would say that as long as I’ve been around the company, everything that we have bought we have bought with the idea of sustainability because it’s just good business. We added additional fuel filters years ago to get more miles out of our oil, which meant less waste oil back into the system. We ordered our electrical system so that we could get by with three batteries instead of four; less waste of batteries, less batteries to buy. … So, when natural gas came along, it was kind of a natural for us. It took some learning and took some involvement, but it was the best way to go. We care about the environment. I now have a grandchild and [I] don’t want them to be breathing air that a lot of people used to be breathing in the past.” Question: What advice would you give to those getting involved with alternative fuels for the first time? Jack: “Figure out what it’s really going to cost them and do the ROI [return on investment] calculation. If there are things that are limiting them [like not having service on routes or no fuel on the back end], you have two options: either you stop exploring in alternative fuels or you call one of the fuel vendors and say, ‘Hey, this is the amount of gallons I’ll be fueling here; would you build a station for me?’ or get one of the local mechanic shops to get trained by [engine manufacturer] Cummins because they provide all these free trainings.” Mark: “To me, it’s common sense … before we got into natural gas at all, [we asked] where is it? How do we make it run? Who’s going to support it? We have to get our technicians trained.” “A huge [aspect is] getting out and talking to other people that are doing it.” Question: What are the different types of alternative fuels? Jack: “One [of them] is renewable diesel, which is a nobrainer. If you can find renewable diesel, it costs about the same. … I think the next easiest one to get into is propane because if you can get the truck and it meets the emission standards and the infrastructure is cost-effective — it’s like $30,000 to $50,000 to put in infrastructure — that’s an easy one to get into. The next one is probably CNG [compressed natural gas] and sourcing the CNG. But the infrastructure [is more expensive]. But you get Western Region Vice President Mark Matheson is all smiles during a panel presentation in Las Vegas. (Photo by Darrell Miho) continued on page 12 FEBRUARY 2023 11
longer ranges. ... The next one is battery electric vehicles … for short haul, it works, But, it’s so expensive that the way to make money is drive miles, but if you can’t drive, you’re limited, and you have to charge them for four to eight hours. That’s where you get stuck. And then the next one that’s coming in the future is hydrogen.” Question: What challenges have you faced during your adoption of alternative fuels and how did you learn from those setbacks? Mark: “One of the problems we had with our natural gas trucks in the beginning is the engine manufacturer thought they could program the engines a little bit better than what the specs were. We almost lost 14 engines. So, you want to pay attention to those types of things. I think that getting out and sitting here talking to everybody [is] very important. Training your drivers, making a plan.” “I would say that today for somebody starting out, it’s much easier [than it used to be], but you still have to avail yourself of the training.” Jack: “Some of the mistakes we made [were] not preparing for the maintenance stuff. So, it’s new technology; anything new — now going into battery electric fuel cell — there’s going to be some upkeep. So, make sure you’re training your technicians. Make sure you know the requirements for each state and local area, what you need to do for spec for methane detectors in the shop. And know the intervals for oil changes [because] it’s not by miles, it’s by hours.” Question: What are some of the practical benefits of using alternative fuels? Mark: “I had a driver come to me shortly after we started and he said, ‘I really like the natural gas trucks.’ I said, ‘Why?’ He goes, ‘I don’t go home smelling like diesel.’ … Our mechanics [love] the natural gas trucks because they don’t have to deal with diesel, they don’t have to deal with the smell of diesel. They’re not as greasy because of the diesel. There’s been a lot of off-to-the-side benefits of natural gas.” Jack: “An experience we just had during peak season was it got so cold in Denver that even though we had all the solvents from the diesel trucks, our diesel froze over. But, our CNG trucks started back up. Even the postal vehicles were stuck and they couldn’t run the mail that day. But we had like seven trucks of CNG in Denver and those were the only trucks that showed up and hauled mail that day.” Question: Looking at the current infrastructure, do you think it’s sufficient? Do you have any infrastructure concerns or plans looking towards the future? Jack: “Sometimes, it’s like a Catch-22. It’s like you have the perfect operation that can convert to an alternative fuel, but the infrastructure is not there. And then there’s areas where the infrastructure is there, but you don’t do as much volume. So, it’s always this battle that you have to figure out what to do. Us being in California with a lot of the incentives, the grants out there we’re always looking at help incentivize some of these investments we’re doing with infrastructure into working with vendors and partners to build the infrastructure we need.” Mark: “I think it just all depends on infrastructure for us: where it makes sense and where infrastructure is.” Alternative Fuel Continued Jack Khudikyan of AJR Trucking speaks during a panel discussion at the Western/Central Region Meeting. (Photo by Darrell Miho) 12 NSRMCA
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14 NSRMCA
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CDS officials recently rolled out a new website, one that’s intended to be one-stop shopping for CDS contractors. The website — usps-cds.mailchimpsites.com/ — has been live for at least several weeks, following its announcement Jan. 9 at the NSRMCA’s Western/ Central Region Meeting. The site includes a list of available CDS contracts, along with the corresponding solicitation documents; quick access to the CDS office’s general inbox; and the ability to join a mailing list for suppliers. During a session at the regional meeting, Paul Shish with the CDS office noted that the website was something of a happy accident. He explained that CDS recently signed up for a mass e-mail service called MailChimp, which was intended to get around restrictions in Microsoft Office that prevent users from sending more than 1,000 emails at a time. “What happened is we’ve got 5,500 suppliers and 4,300 administrative officials, so we needed to send out 10,000 emails,” Shish said. “So, Nate [Franklin, CDS Manager] was able to find MailChimp, so we can send out mass emails. … So we set that up, and what we found out is that we get our own website” on MailChimp as well. He added that because the website is hosted by a thirdparty, it lacks the standard iconography or web address associated with USPS. “It’s not going to look like a postal website because we had to design it. … but don’t think that it’s sketchy.” Lastly, Shish noted that the website is meant to be transitional as the CDS office works to develop a more traditional-looking web portal for contractors. “I would imagine that we'll have this MailChimp site going for at least a year, until we get to the new software. And I’m really excited about it.” CDS Unveils New Contracting Website By NSRMCA Staff A screenshot of the homepage to the CDS office's new contracting website. 16 NSRMCA
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PSBCA Holds That Spouse,s Threats Justify Default Termination Decision Postal contractors know, or should know, that one of the worst sins they can commit is to threaten physical violence. In a recent case, the Postal Service Board of Contract Appeals extended that sin to include threats from anyone in the contractor’s vehicle while delivering mail. The case is called Angela Wilson, PSBCA No. 6825, and was decided on Dec. 2. Angela Wilson held a CDS contract in Georgia to deliver mail out of the Blue Ridge Post Office. She was regularly accompanied on the route by her husband, who helped her. Angela’s husband had not officially received a security clearance. But local postal officials knew this, and that he regularly helped out on Angela’s contract, and they did not object to the arrangement. About two years into the contract, an incident occurred while Angela and her husband were delivering mail. A car was blocking them on a narrow road along the route. They got out of their vehicle and her husband began arguing with the people in the other car over an incident that occurred the day before. The decision does not state what the argument was about or what happened the previous day. Fighting Words The argument was captured on video. It showed that Angela’s husband moved toward the people in the other vehicle and made various threats. The board’s opinion cites six separate statements. Here are the two mildest ones (the other four are profane and include the threats): • “I need a good fighting.” • “I don’t take no crap from out-of-towners.” The people in the car reported the incident to the postmaster. The contracting officer terminated the contract for default due to: (1) violation of the contract’s zero-tolerance policy; and (2) an unauthorized person in the vehicle during contract performance. Angela appealed the default termination to the PSBCA. Previous PSBCA cases involving disruptive behavior and threats had taken place at postal facilities, but this incident happened on the road and did not involve any postal employees or other contractors. The board noted that Angela’s CDS contract contained the following clause that set out the Postal Service’s zero-tolerance policy: Suppliers and their employees must conduct themselves in a professional and business-like manner, since poor conduct By David Hendel LEGAL CORNER 18 NSRMCA
has a direct reflection on the Postal Service. Zero tolerance means that we will not ignore any incident of verbal or physical action on the part of any supplier (or the supplier’s employee) who could cause injury to another. Anywhere Is Wrong The board found that this policy applies to the contractor’s conduct wherever the contractor is performing the contract. Thus, it didn’t matter that the incident occurred on a public road as opposed to a postal facility — the threats of violence made during performance of the contract violated the policy. And even though the threats came from Angela’s husband, not Angela, he was acting in the capacity of her employee and she was held responsible for his behavior. The board thus upheld the termination on this basis. As an aside, the use of profanity during an argument does not necessarily justify a default termination. In Banks Trucking, PSBCA No. 3528, the contractor and the postmaster engaged in a heated argument, with profanity uttered by both parties, and neither man giving an inch. But there was no physical contact or threat of violence, and the postmaster was not intimidated by the contactor’s conduct, so the board overturned the default termination (this case was decided before the zero-tolerance policy was made a contact requirement). Now back to Angela’s case. The board next considered the second grounds for the default termination, that Angela allowed an unauthorized person — her husband — to deliver the mail with her. Angela’s husband had regularly ridden with her while she performed various contacts for over 12 years and the Postal Service never objected. About 10 years before the incident, she had submitted security clearance paperwork to get her husband cleared. She never received formal approval, but a postal employee gave her a “thumbs up” and told her “everything was fine” with having her husband ride with her. Management Instruction Infraction The board took a hard line, though, holding that by allowing an unauthorized person to ride with her, Angela breached the requirements of Management Instruction PO-530-2009-4. That Management Instruction requires the contractor to obtain a security clearance for all personnel working on the contract and that they be re-screened at least once every four years. Thus, even if her husband had received approval 10 years ago, he had not been re-screened within the past four years, so Angela was in violation of the contract. But imagine if this issue had arisen in a different scenario, with no threat of violence. For example, what if Angela’s husband had helped the people in the narrow road change a flat tire or get out of a ditch? And then suppose those grateful people wrote a letter to the postmaster, commending Angela’s husband and saying they were glad he was delivering their mail. Would the postmaster have sought to default terminate Angela’s contract because her good Samaritan husband had not been re-screened within the last four years? In any case, the PSBCA’s decision highlights the importance of following the Postal Service’s zero-tolerance policy and obtaining security clearance for all personnel involved in the contract. FEBRUARY 2023 19
Some things are very much a product of their times. Such is the case with the Miss Star Route competition, which NSRMCA’s forerunner - the National Star Route Carriers Association - held in emulation of the Miss America Pageant. 1955’s winner, Judith Bryant, was selected during a state-level meeting in Florida. Celerity, Certainty and Swimsuit Competitions 1955 20 NSRMCA
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The Perks of Being a Government Contractor Did you know that as a government contractor you can get discounts at quite a few places? That is one perk of this job, and I hope you are all taking advantage of it. I have spent quite a bit of time over the years finding out who gives discounts to government employees and contractors. Here are some of the places and services I have found: 1. Mobile phone services: I personally have AT&T wireless and get 25 percent off the monthly service charge and 50 percent off eligible accessories. Such as cases, earbuds and screen protectors that you buy through AT&T. I believe most mobile companies do this, so call yours and see what they offer. I know Samsung gives up to 30 percent off. 2. Hotels: When you book your hotels, always look for the government-discounted rate. I use this often. • Caesars Rewards: 30 percent off their lowest hotel rate • Flamingo and Paris/ Las Vegas: 30 percent off their lowest rate • Hilton Honors • World of Hyatt • Marriott Bonvoy • Others, I’m sure 3. Costco: $20 gift card when you join. 4. Yeti: 20 percent off coolers, drinkware and bags. 5. Oakley: Up to 60 percent off. (yes, you read that right). 6. Reebok: 50 percent off. 7. ContactsDirect: 15 percent off any order, plus free shipping. 8. Ray-Bans: 15 percent off. 9. Sunglass Hut: 15 percent off. 10. Ooni: 15 percent off for U.S. and Canada. 11. Keen Footwear: 30 percent off. 12. New Balance: 25 percent off. 13. Beyond Clothing: 20 percent off. 14. Glasses.com: 60 percent off lenses, and free shipping. 15. Cobra: 5 percent off. By Cindy LoRusso CDS CORNER 22 NSRMCA
16. Tula Skincare: 20 percent off. 17. LensCrafters: 60 percent off lenses. 18. 360 Cookware: 36 percent off. 19. Bahamas Paradise Cruise Line: 10 percent off. 20. Alex and Ani: 20 percent off. 21. Motherhood Maternity: 10 percent off. 22. Tire Kingdom, and I’m sure other tire places. If you are a government worker, you could be eligible for hundreds of discounts from your favorite companies. Not sure if you are included in the government discount? Well, if you are a Postal Service worker, compliance officer, or work for the state or federal government in any capacity, you are likely able to access these deals and more. Once you know what kind of discount you are looking for, you can start browsing. You will most likely have to give an ID at checkout if you are shopping these online. When I got my tires, I showed my ID and got quite a big discount. Hope this helps you out and saves you some money. In today’s market, we need all the discounts we can get! I hope you have a great month and as always, I’ll see you back here in March. Cindy K. LoRusso Lower carbon emissions should get your attention. Lower fuel costs definitely will. CleanEnergyFuels.com A transportation fuel made from organic waste that reduces carbon emissions by an average of 300% versus diesel, and at a fraction of the fuel price. Get up to $200,000 o a new RNG truck when replacing an old diesel one. To learn more, contact: Derek Turbide [email protected] 949 . 437 . 1305 C M Y CM MY CY CMY K FEBRUARY 2023 23
Eastern/Northeastern Region Meeting April 16-17 BWI Airport Marriott 1743 West Nursery Road Linthicum Heights, MD, Register: tinyurl.com/whx6wfe6 National Convention August 6-9 J.W. Marriott 1331 Pennsylvania Avenue N.W. Washington, D.C., 20004 Registration details coming soon! Upcoming Events Mark Your Calendars! 24 NSRMCA
PROPANE AUTOGAS TRUCKS DELIVER RESULTS Challenge: Result: Economic Savings: By the Numbers: • 26 Ford-750 trucks equipped with ROUSH CleanTech propane fuel systems • 8,000 miles per vehicle per month • 16,000 gallons of propane autogas used per year per vehicle Lisa McAbee, Owner of McAbee Trucking ROUSHcleantech.com | 800.59.ROUSH Company: McAbee Trucking, Inc. Industry: United States Postal Service contractor Location: Blacksburg, South Carolina Making the switch to alternative-fuel vehicles had to make sense financially. “Propane is very favorable for us economically,” McAbee said. With the money saved overall due to propane’s efficiency, the company has upgraded its facilities, vehicles and parking lots. With the addition of propane autogas delivery trucks, McAbee Trucking is reducing harmful emissions, benefiting employees’ health and improving the local community’s air quality — all while reducing costs. To cut emissions of its fleet vehicles, lead the industry in the use of alternative transportation fuels and “do the right thing” for generations to come. I want my grandkid’s grandkids to have a clean environment. I have breathing issues, as so many others do. I want to do more than my part to help. Contact ROUSH CleanTech to learn more about propane vehicles for your fleet. FEBRUARY 2023 25
(In this month’s column, we discuss Artificial Intelligence) Hope everyone is having a wonderful winter, as this one is turning out very different from many others. The Las Vegas conference was fun and saw the addition of new NSRMCA members, new vendors, new service providers, new categories of vendors, and the new leadership’s actions starting to take effect at the USPS. We have been hearing for months about many coming changes, and their time seems to have come. So, I welcome all our new members and vendors and I look forward to meeting everyone and learning from each other. In my opinion, collaboration always wins over competition. This month, we’ll be covering Artificial Intelligence to learn where is it being used and how it will help improve and enhance the quality of our lives. For example, I asked ChatGPT (chat.openai.com) the latter question and it wrote the following part of my article that would have taken me several days of research to put together: Artificial Intelligence (AI) is a branch of computer science that deals with the creation of intelligent machines that can perform tasks that would normally require human intelligence to complete, such as visual perception, speech recognition, decision-making, and language translation. There are many ways that AI can help humans, some of the most common and impactful applications include: • Healthcare: AI can assist doctors in diagnosing diseases, creating personalized treatment plans, and even assist in surgery. • Customer service: AI-powered chatbots can provide quick and efficient customer service, 24/7, helping companies save time and resources. • Transportation: AI is being used in self-driving cars to make transportation safer, more efficient, and accessible to people who cannot drive. • Financial services: AI can help banks detect fraud and make more informed investment decisions, while also improving the overall customer experience. Artificial Intelligence Is Here to Help TECH CORNER By Jack Khudikyan 26 NSRMCA
• Manufacturing: AI can help optimize production processes, increase efficiency, and reduce waste. In conclusion, AI has the potential to transform many industries and improve our daily lives. However, it is important to also consider the ethical and societal implications of AI as it continues to advance. ChatGPT is a conversational AI model developed by OpenAI. It is a state-of-the-art language model based on the transformer architecture, trained on a massive dataset of text from the internet. It has been designed to generate human-like responses to text-based prompts in a variety of different styles and formats. How wonderful was this explanation? The format and conclusion were all done by the AI exactly like a human would. I use this ChatGPT service in many parts of my company and you should try it out. Its third bullet point, on how AI is making transportation safer and more efficient, is especially applicable. AI in Trucking For example, AI is being used in several software datasets to machine-learn best practices from logistics professionals on how to better utilize assets and drivers, so the AI can auto dispatch 90-95 percent of available loads in your TMS (another reason why it’s a good time to pick the right TMS!) The T3-TMS we are testing in my company actually has these functions. Eventually, you can even use voice commands to pull specific reports or even change drivers’ schedules in the system if you’re unhappy with the AI’s scheduling choices. A new vendor that appeared in Las Vegas was Spartan Radar, which is using its Ago software to interpret data from a vehicle’s radar - a product called Hoplo that Spartan also produces - to better understand objects in and around a truck/trailer. This AI capability allows a truck to be 100 percent safer since it can detect moving and non-moving objects, and uses better judgement than most humans would to avoid a collision. Eventually, this kind of technology will power all autonomous vehicles, from regular cars to Class 8 Trucks. In-cab cameras now offer AI face recognition, so drivers don’t even need to log in to a system to start their shift; the camera will automatically know who it is and log him/her in. Then if your TMS system is smart enough, it can start its workflow and navigate the driver to the next stop for pickup/ delivery. As the driver enters and leaves geofences that were created in the TMS, the actual times will auto-populate in the TMS. That data can then be transmitted to the USPS via FourKites, creating seamless AI-based operations. I hope I was able to bring some insight into how AI will make our lives more joyful and efficient. It will allow us to focus on the things that matter most to us. Also, how the AI revolution will be affecting all of our companies’ integration into the ILE/CLEAR system. FEBRUARY 2023 27
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Fuel Indexes The charts below detail the average monthly retail prices for diesel and gasoline, according to the Department of Energy. Consult the top chart to determine which of the eight regions you occupy. The middle chart covers diesel prices while the bottom one addresses regular gasoline prices. US Retail on Highway Gas & Diesel Update for DOE Monthly Average Retail Gasoline All Formulations New England (PADD 1A) Retail Gasoline Prices Central Atlantic (PADD 1B) Retail Gasoline Prices Lower Atlantic (PADD 1C) Retail Gasoline Prices Midwest (PADD 2) Retail Gasoline Prices Gulf Coast (PADD 3) Retail Gasoline Prices Rocky Mountain (PADD 4) Retail Gasoline Prices West Coast (PADD 5) Retail Gasoline Prices June 2022 4.958 4.921 4.609 4.879 4.574 4.902 5.815 July 2022 4.650 4.622 4.201 4.496 4.093 4.864 5.481 August 2022 4.195 4.175 3.615 3.809 3.483 4.250 4.941 September 2022 3.638 3.710 3.335 3.590 3.158 3.906 4.896 October 2022 3.558 3.702 3.295 3.744 3.218 3.874 5.402 November 2022 3.790 3.851 3.305 3.587 3.065 3.662 4.810 December 2022 3.427 3.427 2.960 3.014 2.715 3.180 4.102 January 2023 3.325 3.469 3.201 3.217 2.996 3.287 3.992 New England Central Atlantic Lower Atlantic Midwest Gulf Coast Rocky Mountain West Coast California ME NY WV ND NM MT WA CA NH PA VA SD TX WY OR VT NJ NC NE AR UT NV MA DE SC KS LA CO AZ CT MD GA OK MS ID AK RI DC PR MN AL HI FL IA MO WI IL MI IN OH KY TN Highway Diesel New England (PADD 1A) No 2 Diesel Retail Sales (C/gal) Central Atlantic (PADD 1B) No 2 Diesel Retail Sales (C/gal) Lower Atlantic (PADD 1C) No 2 Diesel Retail Sales (C/gal) Midwest (PADD 2) No 2 Diesel Retail Sales (C/gal) Gulf Coast (PADD 3) No 2 Diesel Retail Sales (C/gal Rocky Mountain (PADD 4) No 2 Diesel Retail Sales (C/gal) West Coast (PADD 5) Less CA: No 2 Diesel Retail Sales (C/gal) California No 2 Diesel Retail Sales (C/gal) June 2022 6.118 6.117 5.726 5.662 5.393 5.709 6.465 6.874 July 2022 5.743 5.797 5.393 5.460 5.135 5.585 6.193 6.587 August 2022 5.259 5.327 4.898 5.000 4.706 5.008 5.648 6.123 September 2022 5.057 5.119 4.842 5.023 4.717 4.937 5.633 6.149 October 2022 5.449 5.549 5.065 5.226 4.885 5.195 5.838 6.330 November 2022 5.962 5.946 5.188 5.253 4.826 5.392 5.736 6.121 December 2022 5.380 5.459 4.743 4.609 4.309 4.971 5.249 5.558 January 2023 5.105 5.121 4.671 4.427 4.277 4.727 5.085 5.467 30 NSRMCA
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It’s no secret that the USPS is updating its transportation technology and implementing a plan to modernize the transportation network. For this to be successful requires investment, modeling, planning and communication with stakeholders. Suppliers who wish to participate will need to understand their part in the system and be able to connect their own technology seamlessly into this system, which the postal service calls the Integrated Logistics Ecosystem (ILE). As this effort continues to roll out, many suppliers find themselves stuck between what they need to do today, while simultaneously moving to the new platforms and surviving ever changing economic strains. No small task for any of us. So how do we keep current operations going while the whole system evolves? At the same time, how do we implement new systems that will replace much of the current model? And how do we survive a hodgepodge performance grading system being used to qualify or disqualify suppliers for renewal? The answers to these questions are not totally clear yet, but your membership — and the education and resources it makes available — will help us all get there. The item at the top of the list now is the 95 percent performance metric. Why do some suppliers seem to have no problem hitting it while others struggle with it? We have heard the issue is not generally money, nor an inadequate supplier nor operations at the USPS. Data suggests that the combined variables of a certain route have more to do with the performance rating than which supplier operates it. If this is true, then how can we plan for and predict our results? Overcoming Data Bias As humans, we try to use the data we have to make decisions, from who might be a good supplier to what should my business look like; our fatal flaw, however, is that we almost always have a bias of some kind as we try to make sense of the data. While “data does not lie,” it can be interpreted incorrectly. So how do we avoid creating bias around data? There is a new tool that uses AI to more accurately predict and help make decisions. It is called a digital twin. What a digital twin does is it consumes a wealth of historical data - traffic data, schedule data, truck performance data, ELD data, weather data, accident information, and maintenance - and very accurately predicts future outcomes. For example, perhaps a postal schedule is shown to be successful 250 out of 365 days based on all this data. You could argue that the trip is doable and most of the time it is, but 250 out of 365 makes your performance data 68 percent; a far cry from 95 percent. If everyone must deal with the same set of variables, it is unlikely the future state will look much different than the historical state. A digital twin can virtually run these trips over and over again with different sets of variables to create a path to 95 percent, which may be way simpler than just replacing the supplier. We live in an ever-changing but exciting time, and it is difficult to understand how all this will come together, but we can now imagine how to achieve better results. The path forward will not be as simple or as traditional as we are accustomed, and the feedback loops will be almost immediate. There will be less guessing and less luck needed to succeed, but make no mistake, it will still take a giant effort. Put a stamp on it! Sign up for Informed Delivery! John Sheehy President’s Perspective John Sheehy NSRMCA President 32 NSRMCA
WHEN IT COMES TO ALTERNATIVE POWER OPTIONS, NO ONE OFFERS YOU MORE. Rush Truck Centers is the premier solutions provider to the commercial vehicle industry. We offer a range of power options to meet your specific needs, from diesel and gasoline to natural gas and electric. However, not every fuel type is practical for every application. Through our consultative approach, we can help you make the right choice for your business, your carbon reduction goals and your total cost of ownership. RICK ANDRIX – NEW TRUCK SALES REPRESENTATIVE 614-541-4530 direct l [email protected] RUSH TRUCK CENTERS IN OHIO Akron, Cincinnati, Cleveland, Columbus, Dayton and Lima. CONTACT YOUR DEDICATED SALES REPRESENTATIVE TODAY. PREMIER SOLUTIONS FOR THE ROAD AHEAD. © 2023 Rush Enterprises, Inc. 0003-0123 RTC Ohio National Star Route Carriers 7.75x4.8125 Ad Clean air everywhere hexagonagility.com Carbon negative mobility solutions Sustainability Well-to-wheel, renewable natural gas (RNG) is the only alternative fuel that can be carbon negative Cost savings Low and stable RNG fuel prices enable long term reduced fuel expenditures Proven and reliable Safe, proven and scalable technology available today Joe Reisz Regional Sales Manager [email protected] 440-371-7651 Contact us for more information FEBRUARY 2023 33
CPI-W: CDS Contractor Index The CPI-W is a monthly measure of the average change over time in the prices paid by urban wage earners and clerical workers for a market basket of consumer goods and services. The CPI-W is based on the spending patterns of urban wage earners and clerical workers. The CPI-W can be used to request an adjustment to your contract to accommodate increased costs. Line items 1B, 5, and 17 are adjustable by the CPI-W. A contractor may simply make a request to the Postal Service to incorporate the latest CPI adjustment and it will do the calculations. But there may be times when the comparison period reflects a downward CPI and if you ask the Postal Service to incorporate the CPI adjustment you could be faced with a downward adjustment resulting in reduced compensation. The CPI does not always go up, so it is best to do the math prior to applying for the adjustment. Source: https://www.ssa.gov/oact/STATS/cpiw.html Month & Year Rebased October 2018 247.0 November 2018 245.9 December 2018 244.7 January 2019 245.1 February 2019 246.2 March 2019 247.7 April 2019 249.3 May 2019 249.8 June 2019 249.7 July 2019 250.2 August 2019 250.1 September 2019 250.2 October 2019 250.8 November 2019 250.6 December 2019 250.4 January 2020 251.3 February 2020 251.9 March 2020 251.3 April 2020 249.5 May 2020 249.5 June 2020 251.0 July 2020 252.6 August 2020 253.5 September 2020 254.0 October 2020 254.0 November 2020 253.8 Month & Year Rebased December 2020 254.0 January 2021 255.2 February 2021 256.8 March 2021 258.9 April 2021 261.2 May 2021 263.6 June 2021 266.4 July 2021 267.7 August 2021 268.3 September 2021 269.0 October 2021 271.5 November 2021 273.0 December 2021 273.9 January 2022 276.3 February 2022 279.0 March 2022 283.1 April 2022 284.6 May 2022 288.0 June 2022 292.5 July 2022 292.2 August 2022 291.6 September 2022 291.8 October 2022 293.0 November 2022 292.5 December 2022 291.1 January 2023 293.5 34 NSRMCA
OUR MEMBERS FORM the foundation OF THE COMMUNITIES THEY SERVE. YOU ARE Since 1925, we’ve prided ourselves on helping members build a solid financial foundation for themselves and their families. That’s why nobody can serve our members like we can. For more information on benefits of membership, visit us online at www.apcu.com. a Tradition of Service serving postal employees and their families since 1925 FEBRUARY 2023 35
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