New TSP Performance Metrics in Effect for FEMA

1/7/2015 10 Considerations in Choosing a Freight Audit and Payment Provider


On Thursday, January 1, 2015, the Federal Emergency Management Agency put into effect new performance metrics for transportation service providers. The new metrics will assist FEMA in identifying TSPs who can meet a high service level, and to focus their contracting efforts on high-quality carriers.

Under the new metrics, the Transportation Management Branch of FEMA will evaluate five separate performance metrics for each transported load:
1) TSP withdraws from commitment
2) TSP unable to accept transportation tender
3) TSP fails to meet Required Delivery Date (RDD)
4) TSP fails to provide In-Transit Visibility (ITV)
5) TSP loses or damages shipment

Each transportation service provider will be evaluated by FEMA on a pass/fail basis for each shipment. This means that if one or more performance metric be missed on a shipment, FEMA will report the shipment to GSA as a service failure. No more than one performance metric service failure can be recorded on any single shipment.

Punitive actions will be taken for carriers with significant numbers of service failures. No action will be taken if a carrier has a compliance rate of 95%-100%. A memorandum of concern will be sent to the TSP by FEMA if a carrier’s compliance rate falls to 83%-94%. A memorandum of warning will be sent to the TSP by FEMA if the carrier’s compliance rate falls to 71%-82%. FEMA will place a 30-day suspension on a carrier with a compliance rate of 61%-70%, and will recommend removal of a carrier within six months if the compliance rate falls to 60% or below.

FEMA will also use the compliance rate under these metrics to identify “preferred TSPs” for contracting in the event of a large-scale disaster or no-notice incident. In such an event, TSPs with compliance rates of 95%-100% would have the top-tier designation of TSP Alpha, TSPs with a compliance rate of 83%-94% would have the second-tier designation of TSP Bravo, and TSPs with a compliance rate of 71%-82% would have the third-tier designation of TSP Charlie.

For additional information, the full memorandum outlining the performance metrics can be viewed here. Please contact TIA’s Government Freight Committee staffer Will Sehestedt at 703-299-5700 or sehestedt@tianet.org if you have additional questions.