47.305-8 (90) Vendor Shipment Module.
(a) General Information.
(1) The Defense Logistics Agency's (DLA's) Vendor Shipment Module (VSM), formerly known as the Distribution Planning and Management System, is a distribution and transportation system that enhances DLA's ability to plan and manage distribution. It is an information technology (IT) system that provides in-transit visibility (ITV), current shipping addresses, and may reduce transportation costs. For shipments of materiel that DLA buys from suppliers, VSM provides ITV to consignees, consolidation and containerization points (CCPs), air and water ports, and various Government supply and transportation information systems.
(2) VSM has the capability to organically arrange vendor shipments with Government managed carriers under integrated IT functionality. Use of VSM by vendors reduces frustrated freight at the CCPs, and air and water ports; and minimizes delays in vendors obtaining shipping instructions. VSM automatically prepares shipping labels in accordance with MIL-STD-129P, Bills of Lading, Packing Lists and other shipping documentation that the supplier can download and print.
(b) Policy.
(1) VSM is of primary benefit in the following situations:
(i) DLA administered contracts where the ultimate destination is a location outside of the United States, e.g,
(A) OCONUS Customer Direct (CD)
(B) Defense Depots located overseas For these shipments, the vendors can obtain shipping instructions and shipping labels through VSM without having to contact the DLA transportation office.
(ii) CONUS CD shipments: Although the vendor may not need shipping instructions, the vendor can obtain the required shipping labels via VSM.
(iii) Long term contracts which include CD support: Because of the benefits of VSM for CD shipments, especially OCONUS, Acquisition Specialists can consider either requiring VSM use by the vendor, or strongly encourage it.
(2) For FOB Origin contracts administered by DLA, VSM will make the transportation arrangements using government rates and carriers. In these circumstances do not use clauses which require the vendors to pre pay and add transportation charges (e.g., FAR 52.247-65, F.O.B. Origin, Prepaid Freight - Small Package Shipments). Also, ensure that "T" is not used in the transportation charges reimbursable code in DPACS. Otherwise, invoices for transportation changes will be paid by DFAS.
(3) For contracts administered by DCMA, vendors must still contact the DCMA Transportation office in lieu of using VSM. On a case-by-case basis, there may be circumstances where DCMA will permit use of VSM on DCMA administered contracts. Obtain agreement from DCMA prior to award when allowing a vendor to use VSM on a DCMA administered contract.
(4) Although the shipping label is not mandated for DLA Direct shipments, a shipping label is still required. Vendors now have the option of using VSM to generate the military shipping label.
(c) Prescription.
(1) The purpose of the clause is to encourage use of VSM by vendors as described in 47.305-8(a) and (b) above; the clause does not make VSM mandatory. Therefore, it is recommended that the clause be inserted in solicitations and contracts as a normal practice, unless the Contracting Officer knows in advance that VSM is not suitable for a particular acquisition. In addition, the clause should not be used in the following circumstances:
i) DCMA administered (except as authorized on a case-by-case basis)
ii) Pharmaceuticals
iii) Medical - Customer pick-up only
iv) Arms, ammunition & explosives (AA&E)
v) Controlled substances and syringes
vi) Tailored Vendor Relationships (TVR)
vii) Contracts for Service, except shipments of Government Furnished Equipment (GFE)/Government Furnished Material (GFM)
(2) Transportation Office notification/requirement. Contracts that are administered under the the above-mentioned exceptions at (c)(1)(i thru vi) may contain the statement: "Contact the Transportation Office at the Administration Office specified in block 7."
A) For DLA administered contracts, vendors must contact the Supply Chain Transportation office Helpdesk at (800) 456-5507 or via email to delivery@dla.mil
B) For contracts administered by DCMA, vendors must contact the DCMA
Transportation Office listed on the award document in lieu of using VSM.