DOD Decides Against Privatizing Service Members’ Household Goods Moves
Defense Secretary Pete Hegseth directed defense officials Wednesday to improve the current program for moving service members’ household goods, rather than continuing with a plan to privatize the process. (Stephenie Wade/DOD)
Defense Secretary Pete Hegseth decided to reverse course on the idea to privatize the process that moves service members’ household goods.
Instead, he directed officials to improve the current program, which will remain in place for at least three years, according to an advisory sent Wednesday to the military services and personal property shipping offices, as well as companies previously approved to move troops and families under the “tender of service” program, the DOD’s legacy system for managing moves.
During the next three years, officials will modernize the program into a “government-controlled software solution” and complete an ongoing market study by research economists of commercial moving and storage rates, the advisory says.
The work will include validating rates for fairness and reasonableness of the tender of service program and updating or replacing business rules.
One large hurdle with the department’s attempt to privatize the management of military moves, which was terminated in June, was the rates offered under the new contract. Some moving companies declined to work with the new program, citing lower rates than they were paid traditionally.
Hegseth’s decision is based on the recommendations of the Permanent Change of Station Joint Task Force, which will continue its work until Aug. 31, 2026, “or until the establishment of a permanent follow-on organization,” Wednesday’s advisory reads. The advisory was sent by the task force and the Defense Personal Property Management Office at Scott Air Force Base, Illinois.
Hegseth formed the task force this summer to address immediate and long-term issues with the movement of household goods.
By Dec. 15, the PCS task force will provide a more detailed analysis of the options for a follow-on organization. Army Maj. Gen. Lance G. Curtis remains the task force commander.
It remained unclear Wednesday what other changes might be coming to the program, known as the Defense Personal Property Program, or DP3, which deals with hundreds of moving companies.