USTRANSCOM awards $7.2B global household goods contract to Parsippany-based ARC

By Emily Bader
Parsippany | May 1, 2020 at 10:55 am

U.S. Transportation Command, one of 11 unified commands of the United States Department of Defense, announced on Thursday it has awarded Parsippany-based American Roll-on Roll-off Carrier a $7.2 billion global household goods contract.

“DOD families are our North Star and the reason we are making this change to the Defense Personal Property Program,” U.S. Army Gen. Stephen Lyons, commander, USTRANSCOM, said. “The contract was written by and for the Military Services, and addresses long-standing pain points DOD families have highlighted for years.”

The goods contract is one part of a broader plan from the Department of Defense to improve access to and better manage the relocation process for DOD families, it said.

“To be clear, the DOD will never relinquish responsibility for household goods shipments,” Lyons said.

Over the next nine months, USTRANSCOM and ARC will integrate the program’s IT systems and processes, with the move slated for February 2021. ARC will handle all of the U.S.-based shipments during 2021’s peak season. Transition work will resume in October 2021, with ARC managing 100% of the workload in time for next season.

Once the program has been updated, customers can expect better communication throughout the move; improved standards for professional movers; clear accountability when things go wrong; and a streamlined claims process for loss or damages.

To finish the contract in time, ARC said it partnered with a group of subcontractors to carry out the moves, ensuring 40% of total acquisition value of the domestic work performed was by small businesses.

“Small businesses are — and will remain — the backbone of this program,” Rick Marsh, director of the Defense Personal Property Program at USTRANSCOM. “If a company delivers a quality product in today’s program, there is room for them in tomorrow’s. Their capacity will remain critical as long as DOD moves personnel and their families around the globe.”

“The DOD is the largest consumer of household goods services — restructuring our relationship with industry in this manner lets us raise the standard of service for DOD families. ARC brings tremendous capability to the table and they’ve built an impressive coalition of industry leaders to generate the quality capacity this program requires,” said Marsh. “Once we’ve transitioned into the contract, DOD families will see improved customer service and more professional processes and interactions with the movers that serve them. ARC will also introduce some pretty powerful digital tools — the kind of simple, modern tools we demand in every aspect of our personal lives, but that DOD cannot independently deliver to the moving process.”

All shipments and customers moving in 2020 will stay under the existing program, the DOD said.

“Throughout my career, I’ve been disappointed with what the Defense Personal Property Program does to families,” Chief Master Sgt. Jason France, command senior enlisted leader for USTRANSCOM, said. “Today, I’m confident that the Defense Personal Property Program will deliver the care and service they deserve in the coming years.”

Emily Bader | ebader@roi-nj.com | @emilybader