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.
Can just imagine what will happen if this gets approved. Remember the base housing maintenance program being privatized. A TOTAL DISGRACE CAUSING NUMEROUS COMPLAINTS AND MAJOR PROBLEMS FOR MILITARY FAMILIES!!!!
Briefly, I disagree. The secrecy of troop movements is a sensitive item maintaining America’s forces and element of surprise being part of the equation. Privatizing PCS moves puts that information into public hands with higher chances of leaks.
No privatization. Privatization means someone makes money off the soldier, while the soldier gets screwed. I’ve seen it happen over and over. They pick the lowest bidder and the company makes it money by denying claims or just bad moves. There is to much privatization in the military and the troops always pay for it in the end. Making money off the backs off soldiers should not be allowed, but there’s a lobbyist that do. The lobbyist don’t care about the soldiers, just the money they make. Fix what’s broke and don’t sell out to the lobbyist and privatization.
I would agree with this if it saves the military personnel money and time in the long run. Otherwise no.
PCS moves should never be handed over to the private sector. Look what happened to on base housing when the building, maintenance and control was given to the private sector. Today, base housing can’t get repairs, mold in the housing and the Base Commanders can’t do a thing ( or won’t ). Keep PCS moves accountable by the Military if damage, loss etc encountered by the Military member.
Having one company will not improve damage. The people packing have biggest causation. The military possibly could save money due to large number per carrier. Best may be splitting between 2 or all 3 companies for 2 years and eval timeliness and damage. Then pick best.
Privatizing isn’t going to help with the damage problem. All my Domestic PCS’s I did myself and received a check for greater than I spent. I think moves should be done individually but increase the Insured value of Goods.
No, I do not agree with this. Military needs to be accountable for PCS and all that is involved in the process. This will bring a use burden on the Service member and the Family members the same way that private housing has done.
I do not agree with privatization. Please stop choosing the lowest bidder for PCS moves. We pay the price! Many of us that have been in the military for many years have priceless items. Many items broken or damaged are not replaceable. The process is tedious and demeaning then we are reimbursed a paltry sum. We can do better!!