USTRANSCOM Awards Global Household Goods Contract
US Transportation Command (USTRANSCOM), on behalf of the Department of Defense (DOD), awarded American Roll On Roll Off Carrier Group, Inc., (ARC) a Fixed-Price with Economic Price Adjustments, Indefinite Delivery, Indefinite Quantity contract in the amount of $7,211,331,984 in the procurement of the Global Household Goods Contract (GHC) on April 30, 2020.
“DOD families are our North Star and the reason we are making this change to the Defense Personal Property Program,” said US Army General Stephen Lyons, Commander, USTRANSCOM. “The contract was written by and for the military services, and addresses long-standing pain points DOD families have highlighted for years.”
The GHC is one aspect of a broader DOD reform plan to improve the relocation process for DOD families and integrates functions currently performed by hundreds of commercial entities. It will improve access to and management of quality capacity to meet peak demand and enable the department to affix the accountability and responsibility lacking in today’s program. The government will continue to maintain the ordering of services and an accountability program for contractor performance.
“To be clear,” said GEN Lyons, “the DOD will never relinquish responsibility for household goods shipments.”
The DOD has outlined a deliberate transition approach to operations under this contract, and the contract award is simply the first step in this journey. USTRANSCOM and ARC will spend the next nine months integrating IT systems and processes, with the first move under the contract planned for February 2021; ARC will be postured to handle 100% of shipments in the continental US during the 2021 ‘Peak Season.’ Transition work will resume in October 2021, with ARC managing 100% of planned workload (domestic and international) in time for the 2022 Peak Season.
Once implemented, customers can expect improved communication throughout the moving process, professional movers delivering improved service standards ‘at the curb,’ clear accountability when things go wrong, and streamlined claims processes in the event of loss, damage, or inconvenience.
To accomplish the requirements of the contract, ARC has partnered with a group of principal subcontractors to carry out the moves and will ensure a minimum of 40% of the total acquisition value of the domestic work performed flows down to small businesses.
“Small businesses are—and will remain—the backbone of this program,” said Rick Marsh, Director of the Defense Personal Property Program at USTRANSCOM. “If a company delivers a quality product in today’s program, there is room for them in tomorrow’s. Their capacity will remain critical as long as DOD moves personnel and their families around the globe.”
“The DOD is the largest consumer of household goods services—restructuring our relationship with industry in this manner lets us raise the standard of service for DOD families. ARC brings tremendous capability to the table, and they’ve built an impressive coalition of industry leaders to generate the quality capacity this program requires,” said Marsh. “Once we’ve transitioned into the contract, DOD families will see improved customer service and more professional processes and interactions with the movers that serve them. ARC will also introduce some pretty powerful digital tools—the kind of simple, modern tools we demand in every aspect of our personal lives, but that DOD cannot independently deliver to the moving process.”
“Throughout my career, I’ve been disappointed with what the Defense Personal Property Program does to families,” said Chief Master Sergeant Jason France, Command Senior Enlisted Leader for USTRANSCOM. “Today, I’m confident that the Defense Personal Property Program will deliver the care and service they deserve in the coming years.”
While USTRANSCOM looks forward to delivering capabilities under the GHC, the command remains focused on delivering a quality experience for customers moving under the current program. All shipments in 2020 will move under the existing program. DOD personnel can visit https://move.mil for more tools and information to help them prepare for their upcoming move.
This acquisition was openly competed, and seven offers were received. After considering and discussing each competing proposal, USTRANSCOM selected ARC because its proposal provided the best service for the best value for service members, DOD civilians, and their families.
USTRANSCOM exists as a warfighting combatant command to project and sustain military power at a time and place of the nation’s choosing. Powered by dedicated men and women, we underwrite the lethality of the Joint Force, we advance American interests around the globe, and we provide our nation’s leaders with strategic flexibility to select from multiple options while creating multiple dilemmas for our adversaries.
By USTRANSCOM Public Affairs
The major subcontracting partners in Team ARC include the following entities:
- UniGroup is the parent of United Van Lines, the largest moving company in North America, and Mayflower Transit, the fourth largest moving company in North America.
- Atlas World Group, the parent of Atlas Van Lines, founded in 1948, is the second largest moving company brand within the United States.
- Suddath is a 100-year old logistics (local and global), corporate and residential, relocation company and is currently the single largest domestic and international US Government and military HHG supplier.
- The Pasha Group is a family-owned, diversified global logistics and transportation company serving military customers since 1947 and the Defense Personal Property Program since 1980.
- Deloitte, the world’s largest professional services firm, brings fifty years of experience supporting DOD, government agencies, and Fortune 500 commercial entities on complex strategy, IT, design, engineering, and cybersecurity needs.
*Information courtesy of HomefrontSolutions.com.