{"id":87824,"date":"2020-06-29T22:44:59","date_gmt":"2020-06-29T22:44:59","guid":{"rendered":"https:\/\/one.sightlinemg.com\/militarytimes\/uncategorized\/2020\/06\/29\/transcom-allegations-unsubstantiated-awards-72b-contract-to-privatize-household-goods-moves\/"},"modified":"2026-08-08T08:45:06","modified_gmt":"2026-08-08T08:45:06","slug":"transcom-allegations-unsubstantiated-awards-72b-contract-to-privatize-household-goods-moves","status":"publish","type":"post","link":"https:\/\/one.sightlinemg.com\/militarytimes\/management\/pay-benefits\/2020\/06\/29\/transcom-allegations-unsubstantiated-awards-72b-contract-to-privatize-household-goods-moves\/","title":{"rendered":"TRANSCOM: allegations \u2018unsubstantiated,\u2018 awards $7.2B contract to privatize household goods moves"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\"><i>Updated July 1 to include further information about TRANSCOM\u2019s investigation<\/i><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">U.S. Transportation Command officials have confirmed their award to a New Jersey company of a $7.2 billion contract to outsource management of service members\u2019 household goods, according to a statement from the command.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><a href=\"https:\/\/www.militarytimes.com\/pay-benefits\/2020\/06\/10\/transcom-pulls-back-7-billion-contract-to-privatize-military-household-goods-moves\/\" target=_blank>Allegations<\/a> made against the company, American Roll On Roll Off Carrier Group, of Parsippany, N.J., were \u201cunsubstantiated,\u201d TRANSCOM officials said, resulting in the confirmation of the award Monday.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">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. The contract doesn\u2019t affect <a href=\"https:\/\/www.militarytimes.com\/pay-benefits\/2020\/06\/17\/as-military-moves-restart-its-still-a-pcs-season-like-none-other-heres-what-families-need-to-know\/\" target=_blank>service members\u2019 moves<\/a> currently under way; all household goods moves will continue under the current system, managed by TRANSCOM, until February, 2021.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cTeam ARC remains committed to our proposal to provide exceptional customer service to TRANSCOM and the service members,\u201d said ARC CEO Eric Ebeling, in a statement. \u201cWe look forward to getting started on the [Global Household Goods Contract.]\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">TRANSCOM had previously pulled back the contract for the review, and notified the Government Accountability Office of its intent to review the allegations on June 9.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cAn interested party\u201d provided information to TRANSCOM that they believed should have been considered in the award decision. They alleged that ARC didn\u2019t disclose adverse information of its parent company and the parent company\u2019s executives, as is required.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">ARC responded to TRANSCOM\u2019s question about the allegations on June 18. TRANSCOM\u2019s legal counsel and the contracting officer reviewed the response and other relevant information over the course of the following week, according to the statement.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><b>Justice Department officials confirmed to TRANSCOM that the adverse information was not affiliated with ARC or its parent company, according to new information provided by TRANSCOM July 1. <\/b><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cAfter a thorough review of all relevant information, the contracting officer made an independent determination that the allegations were unsubstantiated,\u201d officials stated. During the same time, the source selection team reviewed the entire source selection record, and revised documentation was approved Monday.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The allegations centered around information about Wallenius Wilhelmsen Logistics AS, a Norwegian company. According to a Justice Department press release from July, 2016, Wallenius Wilhelmsen Logistics pleaded guilty to price fixing and paid a $98.9 million criminal fine for its involvement in a conspiracy to fix prices of international ocean shipments of roll-on, roll-off cargo to and from the Port of Baltimore and other locations in the United States.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Both WWL and ARC are owned by Wallenius Wilhelmsen ASA. But ARC is \u201can entirely separate U.S. company with separate U.S. citizen management\u201d according to Charles Diorio, spokesman for ARC. \u201cARC was not a party to the 2016 U.S. Department of Justice case involving Wallenius Wilhelmsen Logistics AS (WWL), a Norwegian company, and has never been accused of any anti-competitive or criminal activities.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Department of Justice officials confirmed to TRANSCOM that ARC and Wallenius Wilhelmsen ASA were not part of the 2016 conviction, according to information provided by TRANSCOM July 1. \u201cAfter extensive review TRANSCOM determined that the corporate misconduct was not affiliated with ARC nor its parent company,\u201d according to TRANSCOM. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">According to the federal government\u2019s System for Award Management website (SAM), the ARC filings don\u2019t list any other immediate owner until August, 2018, when it lists Wallenius Wilhelmsen Logistics AS. That was listed until June 15, when ARC changed that immediate owner to Wallenius Wilhelmsen ASA.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">ARC officials did not provide information about why WWL was listed as their immediate owner until June 15, as TRANSCOM was beginning to review the allegations.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">However, TRANSCOM officials stated July 1 that this was based on a mistake. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">ARC \u201cerroneously listed [Wallenius Wilhelmsen Logistics] instead of [Wallenius Wilhelmsen ASA] as the corporate owner in the pulldown menu of the government\u2019s System of Award Management. It appeared to the protester that ARC failed to meet [Federal Acquisition Regulations] disclosure requirements when, in actuality, the true parent company was misidentified. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cMinor errors in SAM are not grounds for disqualification.\u201d <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Two unsuccessful bidders filed protests of the award. \u201cProtests are a common part of the acquisition process and serve as an important check and balance,\u201d TRANSCOM officials stated.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cSince neither ARC, nor its parent company WWASA, have a record of misconduct, TRANSCOM substantiated its original award to ARC because its proposal provided the best service for the best value for service members, Department of Defense civilians and their families,\u201d TRANSCOM stated July 1.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">ARC is the lead in the contract. The Team ARC consortium includes UniGroup, a $1.7 billion transportation company and the parent of United Van Lines, and Mayflower Transit; Suddath, a company that moves about 30,000 military members a year; Atlas World Group, the parent company of Atlas Van Lines, Inc. and Atlas World Group International; The Pasha Group, which has moved military members since 1947; and Deloitte.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Moves taking place now are under the current system; moves under the new system will start in February, 2021.<\/p>\n","protected":false},"author":7,"featured_media":80469,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_yoast_wpseo_meta-robots-noindex":"","_yoast_wpseo_meta-robots-nofollow":"","_yoast_wpseo_canonical":"","_acf":"","_yoast_wpseo_primary_category":18,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","_smg_distribution_targets":{"4":{"categories":["pay-benefits","daily-news-roundup","newsletters","middle-column","home"],"primary_category":"pay-benefits"},"5":{"categories":["pay-benefits","daily-news-roundup","newsletters","middle-column","home"],"primary_category":"pay-benefits"},"6":{"categories":["pay-benefits","daily-news-roundup","newsletters","middle-column","home"],"primary_category":"pay-benefits"},"7":{"categories":["pay-benefits","daily-news-roundup","newsletters","middle-column","home"],"primary_category":"pay-benefits"}}},"categories":[29,116,35,18,145],"tags":[],"coauthors":[3299],"class_list":["post-87824","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-home","category-left-column","category-newsletters","category-pay-benefits","category-pay-benefits-newsletters"],"acf":{"subheadline":"","legacy_arc_id":"M3EC6TPYV5E5BL7WY5ICFBGHZI","arc_canonical_url":"\/pay-benefits\/2020\/06\/29\/transcom-allegations-unsubstantiated-awards-72b-contract-to-privatize-household-goods-moves\/","remove_feature_photo":false,"is_sponsored":false,"subtype":"","redirect_url":"","disable_inline_ads":false,"native_logo_pretext":"Presented By:"},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.0 (Yoast SEO v28.1) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>TRANSCOM: allegations \u2018unsubstantiated,\u2018 awards $7.2B contract to privatize household goods moves - Military Times<\/title>\n<meta name=\"description\" content=\"Moves taking place now are under the current system; 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