Contract for Household Goods Moving Contract Protested

Contract for Household Goods Moving Contract Protested

It has been reported that two unsuccessful bidders have lodged protests in response to the award of the $6.2 billion contracts to resolve the long-standing problem of moving the household goods of service members and their families.

The U.S. Carrier Group and Connected Global Solutions have filed protests with the Government Accountability Office (GAO).

It had legitimate concerns about the award process when the American Roll-On Roll-Off Carrier Group (ARC) announced its protest with the GAO, resolving contract disputes. The company has been working on this process since early 2019 when it announced that it planned to hire one company to handle household moves, one of the military benefits, around the world. 

ARC was initially awarded the household goods moving contract in April 2020, but the award was protested immediately. The agreement was pulled back twice by the U.S. Transportation Command (TRANSCOM)  before a new solicitation was released in November 2020.

Then TRANSCOM awarded the contract to HomeSafe Alliance, a joint effort between KBR Services LLC and Tier One Relocation LLC. The $6.2 billion contract is valid for three years, starting on December 1 and ending on Aug. 31, 2025. TRANSCOM has informed that the transition phase will be delayed until the GAO protest decisions are available. 
The deadline for the GAO to decide on these protests is 100 days after they are filed, though it makes every effort to determine in advance of the deadline. Furthermore, there are indications that a protest will be submitted to the Court of Federal Claims.

According to Col. Joel Safranek, director of TRANSCOM's Defense Personal Property Program, TRANSCOM plans to begin moves under the new program at the end because of the possibility of protests and the need for a smooth transition of 2022.

Over 900 commercial companies transport about 325,000 shipments annually at the cost of about $2.2 billion under the current program. Several service members handle multiple shipments.

It had been announced that the ARC had been awarded a $7.2 billion contract for a period of about the same duration, with a potential payout of approximately $20 billion over the next nine years.

According to their press release, ARC officials note that TRANSCOM described their proposal as "game-changing".