{"id":52625,"date":"2020-05-07T00:14:08","date_gmt":"2020-05-07T00:14:08","guid":{"rendered":"https:\/\/one.sightlinemg.com\/navytimes\/uncategorized\/2020\/05\/07\/this-72-billion-contract-will-help-fix-problems-moving-service-members-household-goods-officials-say\/"},"modified":"2026-08-08T08:27:53","modified_gmt":"2026-08-08T08:27:53","slug":"this-72-billion-contract-will-help-fix-problems-moving-service-members-household-goods-officials-say","status":"publish","type":"post","link":"https:\/\/one.sightlinemg.com\/navytimes\/management\/pay-benefits\/2020\/05\/07\/this-72-billion-contract-will-help-fix-problems-moving-service-members-household-goods-officials-say\/","title":{"rendered":"This $7.2 billion contract will help fix problems moving service members\u2019 household goods, officials say"},"content":{"rendered":"\n

Service members and their families are the driving reason behind a $7.2 billion contract that will fundamentally change the process for moving household goods, officials say.<\/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

Beginning with domestic shipments in February 2021, 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 U.S. Transportation Command.<\/p>\n\n\n\n

Defense officials announced the contract was awarded to American Roll On Roll Off Carrier Group, of Parsippany, New Jersey, for managing the moves of service members, DoD civilians, and the Coast Guard. Known as ARC, they lead a team of other companies who will be subcontractors, dubbed Team ARC, that have also been in the defense industry for a collective 75 years and are well-known national names in the moving industry. The $7.2 billion covers a nine-month transition and three-year base period.<\/p>\n\n\n\n

Household goods moves this year will continue under the current Defense Personal Property Program, which is managed by the U.S. Transportation Command.<\/p>\n\n\n\n

Among other things, the new process will give DoD \u2014 and service members \u2014 better access to quality movers to meet peak demand for moves, and help DoD fix the problems of lack of accountability and responsibility in the current process, TRANSCOM officials said. It will also improve communications between service members and their movers throughout the move.<\/p>\n\n\n\n

A nine-month transition period has begun, officials said, and the first move under the new contract is planned for February 2021. At that time, Team ARC will handle all the shipments in the continental U.S. during the 2021 peak season, which generally runs from May through August. By the 2022 peak season, the company will be expected to manage all international moves, as well as the domestic moves \u2014 a total of about 400,000 moves each year.<\/p>\n\n\n\n

\u201cDoD families are our North Star and the reason we are making this change to the Defense Personal Property Program,\u201d said U.S. Army Gen. Stephen Lyons, commander of TRANSCOM, in an announcement. \u201cThe contract was written by and for the military services, and addresses a long-standing pain point DoD families have highlighted for years.\u201d<\/p>\n\n\n\n

This move puts TRANSCOM on the right path, said Air Force Chief Master Sgt. Jason L. France, TRANSCOM\u2019s senior enlisted leader. \u201cI fully understand the stresses and frustration associated with military moves,\u201d said France, who has moved 15 times in his 30-year career, nine of which were with family.<\/p>\n\n\n\n

He said service members and family members shared their experiences and recommendations with TRANSCOM officials, as well as leaders across DoD, in the effort to craft a proposal which led to the contract.<\/p>\n\n\n\n

There were seven competing proposals for the contract.<\/p>\n\n\n\n

ARC is part of the Norwegian company Wallenius Wilhelmsen, and operates the largest U.S.-flag fleet of roll-on, roll-off vessels.<\/p>\n\n\n\n

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\n\n\n

While DoD is handing over the management to a private consortium, they\u2019re not washing their hands of the program. \u201cTo be clear, the DoD will never relinquish responsibility for household goods shipments,\u201d Lyons said, in the announcement.<\/p>\n\n\n\n

For decades, military families have complained about damaged and lost belongings during household goods moves, and the quality of service that some moving companies have provided. Families were vocal in the peak season of 2018, when shortages of moving trucks, drivers and packers further exacerbated problems. There were problems with delayed pickups and deliveries, and reports of damage to belongings.<\/p>\n\n\n\t