USTRANSCOM Awards Global Household Goods Contract
On April 30, 2020, the U.S. Transportation Command, on behalf of the Department of Defense (DoD), awarded American Roll On Roll Off Carrier Group, Inc., (ARC), Parsippany, New Jersey, a Fixed-Price with Economic Price Adjustments, Indefinite Delivery, Indefinite Quantity contract in the amount of $7,211,331,984 USD in the procurement of the Global Household Goods Contract.
“DoD families are our north star and the reason we are making this change to the Defense Personal Property Program,” said U.S. Army Gen. 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 is designed to 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 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 U.S. 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.
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. “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.”
While USTRANSCOM looks forward to delivering capabilities under the Global Household Goods Contract, 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 their proposal provided the best service for the best value for U.S. service members, DoD civilians, and their families.