Last month, the Pentagon announced the cancellation of a billion-dollar contract featuring HomeSafe Alliance, related to military family moves.
Last month, the Pentagon announced the cancellation of a billion-dollar Global Household Goods Contract (GHC) to ship the belongings of troops from one duty station to another, bringing an abrupt end to a long period of criticism.
The contract featuring HomeSafe Alliance amounted to around $7.2 billion. In a statement, the Department of Defence (DoD) noted the termination of the contract “for cause due to HSA’s demonstrated inability to fulfill their obligations.”
HomeSafe failed to ensure high-quality moves for the Service members, as per the statement. The Department has put in place a number of immediate changes to address current peak season issues, it further read.
Lance Curtis to lead Permanent Change of Station JTF
The cancellation of the contract comes against a backdrop of the appointment of Maj. Gen. Lance Curtis to lead the Permanent Change of Station (PCS) Joint Task Force (JTF). The JTF can make immediate improvements to the DoD Personal Property Program.
The task force is currently examining the entire PCS process to rapidly identify all other actions to better the moving experience. In addition, the JTF also needs to suggest options for the long-term reform of its mission.
The billion-dollar contract had been troubled from the beginning. It faced a series of bid protests that delayed its implementation. Next came complaints from moving companies that the rates are too less to turn a profit. Other issues also emerged.
It has also been reported that military families said that they had been financially unable to personally do their moves as they had in the past because reimbursement rates for personally procured moves are too less, according to Military.com.
Pentagon not shy about cancelling contracts deemed inefficient
The exact impact of the cancellation of the contract on the Pentagon budget is yet to be ascertained. The contract had originally been meant to have one company coordinate the industry portion of the shipments, hold them accountable and be transparent.
Nonetheless, HomeSafe Alliance (HSA) has protested the contract cancellation. CEO Bobby Nicholson said in a statement that he is incredibly proud of the team’s efforts to manage the “antiquated and broken military move system” that they inherited.
The Pentagon, under Defence Secretary Pete Hegseth, has not been shy about cancelling contracts that it has deemed inefficient. The trade group that represents the trucking industry has hailed the cancellation of the household goods contract.
