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Full Replacement Value (FRV) and the Defense Property System (DPS)

What is it?
The National Defense Authorization Act of 2007 mandated that the Department of Defense (DoD) provide FRV coverage for household goods (HHG) shipments by March 1, 2008. All services have implemented FRV effective October 1, 2007 (international shipments) and November 1, 2007 (domestic shipments) and non-temporary storage, direct procurement method shipments on March 1, 2008. With FRV, HHG carriers will replace lost or destroyed items with new items or pay for a new item of the same kind and quality, at no additional cost to the Soldier. The carrier is liable for the greater of $5,000 per shipment or $4.00 times the net weight of the shipment in pounds up to $50,000.

The new DPS is web-based software for the Families First Program. In addition to FRV, DPS will provides the following enhancements:

  • On-line self counseling of HHG entitlements.
  • On-line customer satisfaction surveys which directly impact the industry’s performance.
  • On-line claim submission for quick settlement direct with the industry.
  • HHG shipments are awarded to transportation service providers based on their quality performance, rather than the lowest bidder.

What has the Army done?
Since the late 1990s, the Army has actively participated in numerous HHG pilots leading up to implementation of FRV and DPS. The Deputy Chief of Staff, G-4 has a key vote in all in- process review meetings, software review/control boards, and general officer steering committees (GOSC) to ensure synchronization of all business rules, policies, and software changes, to arrive at consensus for DoD stakeholder decisions. The Army supplemented the DPS Joint Project Management Office with functional software testers from many of our Army installations to ensure the system will function as designed. The Army’s FY09 program budget estimate submission includes $65 Million for FRV and the DPS programs in anticipation of the forecasted 13 percent increase in industry rates.

What continued efforts does the Army have planned for the future?
Seven Army Personal Property Shipping Offices located in Grafenwoehr, Germany; Camp Zama, Japan; Fort Belvoir, Virginia; Fort Bragg, North Carolina; Fort Sill, Oklahoma; Fort Leavenworth, Kansas; and White Sands Missile Range, New Mexico have volunteered as initial fielding sites. During two functional tests of the DPS in June 2008 numerous software problem reports that required a fix prior to implementation. On October 30, 2008, a GOSC of Transportation Command and Military Surface Deployment and Distribution Command updated the services on DPS software readiness and presented their recommended timeline for initial fielding to the 7 Army sites and 11 other DoD sites. Implementation will begin mid-November 2008.

Why is this important to the Army?
The Army fully supports FRV and the DPS as ways for improving the quality of life for every move, while streamlining the process for our Soldiers and their Families, to increase retention and readiness of the All-Volunteer Force.

POC: Ms. Jolie Lay (703) 692-5404

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