The GHC Contract has Been Awarded. What Can AMSA Members Expect?
AMSA has been working diligently to ensure that through membership feedback and our relationship with USTRANSCOM, unified objectives were defined in the military’s plan to shift to a single source move provider. We relied on member feedback, developed working groups, lobbied and communicated openly with General Lyons at USTRANSCOM. AMSA supported, and will always support, improving service to relocating military families. Through it all, we have been guided by identifying what makes sense for the moving industry, and its largest customer, as a whole. AMSA supported changes that would:
- Improve the service member’s move experience,
- Increase compensation to the drivers and crews directly providing moving services,
- Protect small businesses’ ability to service military shipments,
- Ensure timely payment to service providers,
- Reduce the administrative burden on Department of Defense (DoD) and
- Include contract requirements ensuring the above changes.
The GHC was awarded on Apr. 30 to AMSA member American Roll-On Roll-Off Carrier (ARC), and its consortium of strategic partners, which include additional AMSA members UniGroup (Mayflower and United Van Lines), Atlas® World Group and Suddath as well as Pasha International and Deloitte; collectively known as Team ARC. This team will be responsible for providing global relocation services for the Department of Defense (DoD) and U.S. Coast Guard. It will focus on improving the quality of service provided to service members, their families and DoD civilians.
Now that the contract has been awarded, AMSA Interim President and CEO John Becker discussed the future of domestic military moving with Marc Rogers, UniGroup President and CEO, and Jack Griffin, Chairman and CEO of Atlas World Group, Inc.
John Becker: “How do you see the GHC affecting the moving industry?”
Marc Rogers: “This contract will have a positive impact within the moving industry. Our team is not proposing a one van line solution. There will be opportunities for small businesses, especially independent movers focused on quality to participate. With roughly 400,000 military moves a year, this is about our village, our industry of movers coming together to improve the experience of military men and women and their families.”
John: “Help us understand the consortium that makes up ‘Team ARC’?”
Each team member is committed to delivering a high-quality moving experience that meets or exceeds to requirements of the contract. Our solution provides a consistent, high-quality relocation experience for service members, DoD Civilians and U.S. Coast Guard members and their families worldwide. Team ARC’s members have served USTRANSCOM since its inception and supported our service members and DoD for more than 75 years.”
John: “Some of our members are not familiar with ARC (American Roll-On Roll-Off Carrier). What do we need to know?”
Marc: “ARC is a trusted global transportation and logistics provider serving the U.S. Government, including USTRANSCOM and DoD. ARC, as the prime contractor, brings a global logistics network with substantial infrastructure and substantial financial resources to provide liquidity and investment capacity. ARC has been part of the HHG supply chain for decades. ARC moves thousands of HHG shipments per year on its vessels. ARC realized an industry solution was necessary to deliver quality across the full spectrum of the move.”
John: “What does the change mean for those companies currently servicing (or wanting to service) military moves?”
Jack Griffin: “Crew, truck and warehouse capacity will be needed. As Marc mentioned, there will be opportunities for small businesses, especially independent movers focused on quality, to continue transporting military household goods. With an improved compensation structure to ensure providers have enough income during the off-peak season to support government business throughout the year, we encourage new, quality service providers to get involved. There is a 40% small business requirement as part of the GHC, and we are committed to meeting that expectation.”
John: “What will happen to Existing Transportation Service Providers (TSPs) in the new model?”
Jack: “As we have been discussing, there is a future in GHC for those agents who provide quality service and assets. The term TSP is the term given to a company enrolled in the outgoing legacy program. TSPs may be moving companies or agents, but many are forwarders or move managers with no physical moving assets, such as trucks, warehouses or crews. TSPs who provide operational value, assets and are high-quality performers have a future servicing military shipments under the new GHC.”
John: “What does this mean for the military member?”
Marc: “Through the GHC, the military is demanding a high-tech solution and driving transformation. Ultimately, the goal of Team ARC is to reduce the burden and stress on service members and their families by providing an integrated, state-of-the-art commercial technology platform. Team Arc has created Homefront Solutions to showcase our solution and to meet this need.”
John: “When will the military moves begin under the new contract?”
Jack: “Team ARC will not start operations right away. The GHC includes a nine-month transition period to test systems and procedures in order to have a successful start. There will also be a phased-in, monthly volume target for both domestic and international moves. Assuming no delays due to a lingering protest period, the domestic transition will start in February 2021 and cover four months. The international transition will start in the fall of 2021 and cover another four months.”
John: “Can you provide insight into the proposal?”
Marc: “It is very possible there will be a protest to this award, and we are unable to share many specific details with the public until the protest filing window has passed or any protest has been decided. We are honored to have been selected as part of the winning proposal. Team ARC is excited to share our winning concept with service members and the industry. We are aware you have questions for us, and we think you will be pleased to learn the answers when the time is right.
We can share that the proposal was centered around providing a transformative solution for service members. This includes in-transit visibility with status updates through mobile applications, 24/7 customer service, and dedicated care through a centralized point of contact responsible for coordination and communication throughout the move process. Our military men and women sacrifice so much for our great nation, and they deserve the industry’s best technology solution.”
John: “Is there anything else you’d like AMSA members to know?”
Marc and Jack: “To our professional moving industry partners, whether it is warehouses, trucks or even ships, Team ARC understands the challenges associated with the household goods business and asset ownership. We look forward to introducing the future of military moving to you.”
AMSA remains committed to helping all of our members make this transition smoothly, making their concerns and questions our top priority. Please contact John Becker with any questions.