{"id":54804,"date":"2020-07-15T01:05:47","date_gmt":"2020-07-15T01:05:47","guid":{"rendered":"https:\/\/one.sightlinemg.com\/militarytimes\/uncategorized\/2020\/07\/15\/fight-over-72b-contract-could-delay-privatizing-the-system-for-moving-troops-household-goods\/"},"modified":"2026-08-08T06:44:27","modified_gmt":"2026-08-08T06:44:27","slug":"fight-over-72b-contract-could-delay-privatizing-the-system-for-moving-troops-household-goods","status":"publish","type":"post","link":"https:\/\/one.sightlinemg.com\/militarytimes\/management\/pay-benefits\/2020\/07\/15\/fight-over-72b-contract-could-delay-privatizing-the-system-for-moving-troops-household-goods\/","title":{"rendered":"Fight over $7.2B contract could delay privatizing the system for moving troops\u2019 household goods"},"content":{"rendered":"\n

Updated to include comment from U.S. Transportation Command<\/i><\/p>\n\n\n\n

Two unsuccessful bidders on a $7.2 billion contract<\/a> that will outsource the management of service members\u2019 household goods moves have filed more protests, in a fight that could ultimately push the start of the massive change until late in 2021.<\/p>\n\n\n\n

The contract doesn\u2019t affect service members\u2019 moves currently under way; all household goods moves will continue under the current system, managed by U.S. Transportation Command, until February 2021.<\/p>\n\n\n\n

It\u2019s not clear if that timeline will change because of the protests. But TRANSCOM officials said work on the transition phase of the contract is suspended until the Government Accountability Office issues its decisions on the protests.<\/p>\n\n\n\n

\u201cWe are confident the award decision will withstand GAO\u2019s scrutiny, and look forward to delivering this solution to DoD families,\u201d officials said in a statement provided to Military Times. <\/p>\n\n\n\n

These protests and other potential delays could possibly push the contract start until October 2021 to avoid starting the new contract during the peak season of 2021, said John Becker, interim president of the American Moving and Storage Association. That\u2019s regardless of who ends up with the contract.<\/p>\n\n\n\n

Meanwhile, this year\u2019s military moving season has been beset with delays because of the coronavirus pandemic, and service members\u2019 moves normally made in the summer are likely to extend into next year.<\/p>\n\n\n\n

The $7.2 billion contract covers a nine-month transition period and three-year base period. But if all the options are exercised, the contract will be worth about $20 billion over nine years.<\/p>\n\n\n\n

The protests were filed July 13 with the Government Accountability Office by Connected Global Solutions, LLC and HomeSafe Alliance LLC. They are the latest attempts to reverse TRANSCOM\u2019s decision to award the contract to American Roll On Roll Off Carrier Group, of Parsippany, N.J., also known as ARC.<\/p>\n\n\n\n

GAO is required to make a decision on a protest within 100 calendar days \u2014 by Oct. 21 \u2014 although GAO officials push to make decisions sooner. But if GAO denies the protests, the option of the U.S. Court of Federal Claims is also available.<\/p>\n\n\n\n

The bidders also filed protests in late May. TRANSCOM pulled back the contract<\/a>, investigated, then re-awarded the contract to ARC<\/a> on June 29.<\/p>\n\n\n\n

\u201cU.S. TRANSCOM\u2019s decision to re-award the [Global Household Goods Contract] in light of the serious issues raised is extremely disappointing,\u201d said Al Thompson, CEO of HomeSafe Alliance, in a statement. \u201cWe are confident GAO will agree that errors have been made on a major contract that touches every member of the armed forces and their families.<\/p>\n\n\n\n

\u201cNot only did the selected bid exceed other highly qualified bids by more than $2 billion, but its team of large business subcontractors account for only 35 percent of the total DoD moving market,\u201d he said. \u201cWith the 2021 military moving season set to be the most complex on record, it is imperative that the GAO take the appropriate action that will have the best long-term impact on military members and their families.\u201d<\/p>\n\n\n\n

The contract, aimed at fixing military families\u2019 long-standing problems <\/a>with damaged household goods, and other frustrations with movers, puts management of the moving process in the hands of a consortium of private companies.<\/p>\n\n\n\n

A single commercial move manager will oversee everything related to the movement and temporary storage of household goods, essentially privatizing a function currently conducted by TRANSCOM.<\/p>\n\n\n\n

TRANSCOM awarded the contract April 30. After protests were filed and allegations were made that ARC didn\u2019t disclose adverse information about their parent company, TRANSCOM pulled back the contract June 9 to investigate.<\/p>\n\n\n\t