After tentatively awarding American Roll-On Roll-Off Carrier Group (ARC) a $7.2 billion contract, US Transportation Command has walked back the agreement over recent allegations that are being reviewed.
This initial contract was to cover a 9-month transition period with a 3-year base period. However, with all options exercised, the total package could be worth $20 billion over 9 years.
TRANSCOM Walks Back $7.2 Billion Privatized PCS Contract
ARC was slated to begin the transition to managing all DOD PCS moves in May 2020, with full control achieved by 2022 worldwide. However, TRANSCOM notified the the Government Accountability Office (GAO) on June 9 that the contract had been pulled for review.
“An interested party has presented U.S. TRANSCOM with information that they believe should have been considered in the Global Household Goods Contract award decision. U.S. TRANSCOM intends to take corrective action to consider this new information, gather facts and conduct a review of the award,” according to a TRANSCOM statement.
Should the GAO approve the review, TRANSCOM “will review the entire evaluation record, to include reviewing the reported allegations along with gathering additional facts. We anticipate the corrective action to be complete in the coming weeks.”
This review comes after a 100 day delay as the GAO worked to review contract protests filed by two other moving companies, HomeSafe Alliance, LLC, and Connected Global Solutions, LLC. Both companies had lost the TRANSCOM contract, according to reporting by Military.com.
Privatization of PCS in Response to Military Family Advocacy
The move to privatize all PCS moves is in response to consistent advocacy by military families.
Military families have been protesting the increase in damage to household goods during the PCS process. In February 2019, said Army Col. Ralph Lounsbrough, personal property division chief in TRANSCOM’s strategy, capabilities, policy and logistics directorate, signaled his intention to allow the private sector to handle all military moves.
According to Lounsbrough, department of defense moves account for 20% of all domestic household moves.
“We think it would help with accountability and transparency, and ultimately we’re trying to make things better for the service members,” he said. “We know there are companies out there that have the ability to do that.”
Previously each move was handled individually, with separate contracts being awarded one household at a time.
According to numbers from 2017, there were 430,000 military moves that year with 40% of all DOD moves occurring in the summer.
Short Term Solutions Prior to 100% Privatization
While the TRANSCOM contract is in limbo, military families are still on the move. However, many PCS moves have been delayed due to the global pandemic. With the stop movement order lifted recently, military families should expect their moves to proceed with some adjustment.
Military PCS advocate Megan Harless recommends staying in frequent contact with your assigned move coordinator.
“If your move has started you should be assigned a move coordinator,” she explained. “They are designed to be your single point of contact during your move and give you updates on your assigned dates, weight, delivery, and any issues. If your move has not started or you cannot get a hold of your move coordinator, you can always call your local transportation office, or the TRANSCOM hotline for assistance.”
For additional information about your summer 2020 PCS, use the resources on move.mil or refer to the Joint Chiefs website. Both locations have accurate, up-to-date information regarding the 2020 PCS season.