USTRANSCOM Appears Set to Announce Global Household Goods Contract (GHC) Today

November 04, 2021

USTRANSCOM Appears Set to Announce Global Household Goods Contract (GHC) Today

USTRANSCOM Appears Set to Announce Global Household Goods Contract (GHC) Today

International Association of Movers

Global Household Goods Contract Winner Announced

It appears from multiple sources, that the U.S. Transportation Command (USTRANSCOM) will soon announce its decision to re-award the Global Household Goods Contract (GHC), this time to . Per their website, “HomeSafe was formed to become the exclusive move management provider to the Department of Defense (DoD) in anticipation of the GHC award. HomeSafe is made up of an alliance of Kellogg Brown & Root (KBR) which is a large DoD contractor; Tier One Relocation, a major move manager in the current DoD Personal Property Program; along with a strategic partnership with SIRVA Worldwide Relocation & Moving, which comprises two of the largest US-based van lines, Allied and northAmerican. In media releases last year during past award announcements, the contract was previously reported to be worth $7.2 billion during the transition period and three-year base period; and nearly $20 billion over the life of the contract if all contract extensions and award periods are used. It remains to be seen how those numbers are impacted based on a new awardee.

 

The GHC was awarded twice previously to American Roll On Roll Off Carrier Group (ARC). Once on 30 April of 2020, and again on 29 June of 2020. Both awards were protested. During the first protest, USTRANSCOM voluntarily pulled back the award to review details about ARC’s parent corporation. After review, USTRANSCOM determined the matter was a case of misidentifying the appropriate parent company in a pulldown list in the Government’s System of Award Management (SAM); and once again awarded the GHC to ARC. The second award and subsequent protest to the Government Accountability Office (GAO) was sustained by GAO, resulting in USTRANSCOM accepting new bids from 3 of the original bidders last winter, and evaluating those bids again to determine a winner.

 

Once officially announced, the GHC marks a significant change in how the Department of Defense (DoD) plans to procure its personal property moving services. Under the GHC, a single move manager will be awarded all personal property shipments and be responsible to oversee all activities associated with those moves, world-wide; with what appears to be at least one caveat from the original idea of the GHC, and that is the Military Services can choose to continue to counsel their members on moving entitlements and processes if they choose, vice requiring the contractor to do that in all cases.

 

Currently, the DoD uses a system of tenders and tariffs to procure its personal property moving requirements, and awards those moves directly to hundreds of transportation service providers (TSPs); who in turn often subcontract various portions of that move to local moving and storage agents near DoD installations, while maintaining overall responsibility for the move. While the GHC winner will be awarded 100% of all DoD moves, the process will still require hundreds of subcontractors throughout a world-wide network to play a role in moving service members, DoD civilians and their families. As the single largest shipper of personal property in the world, the DoD’s personal property shipment volume cannot be handled 100% internally by a single company, or even small group of companies.

 

At risk in this new model of a single move manager are hundreds of TSPs who previously were responsible for moving DoD personal property shipments. While some will still participate as a subcontractor, many current TSPs are likely to be out of the DoD moving business altogether. The moving industry will watch closely how new partnerships will form under the GHC.

 

The GHC includes a potential 9-month transition period prior to the start of moving the first shipments under the contract. As previously indicated by USTRANSCOM, the intent was to start moving domestic shipments under the contract, starting with 25% of the domestic shipments in the first month after transition, and increasing by 25% each month. Followed by a transition to international shipments using the same methodology. Most people involved in the program do not expect the GHC to begin execution in the middle of the summer moving peak season. We’ve heard during USTRANSCOM presentations at the National Defense Transportation Association that some believe it’ll be the 2023 moving season when the GHC begins to execute. Of course, as happened last time, protests or court actions could delay the start of the GHC even further.

 

Stay tuned for updates from IAM on significant news and information associated with the GHC, to include timelines for contract execution, and any significant announcements from HomeSafe about the GHC.

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