US military HHG contract on hold

American Roll On Roll Off Carrier Group (ARC) of Parsippany, New Jersey has lost the $20 billion contract to handle household moves for the US military over the next decade that was awarded in April 2020.  The company may, however, still have the opportunity to bid again for the contract.

The US Transportation Command (USTRANSCOM) that awards the contract has ruled that portions of a protest received from other bidders on the contract, Connected Global Solutions and HomeSafe Alliance, were valid. The allegations were that ARC had not been transparent about its ownership.  TRANSCOM had said in June that allegations over ownership had not been substantiated.

In its announcement on 21 October, 2020 the GAO said it sustained several allegations by the protesters, including charges that they were treated unfairly during negotiations and that TRANSCOM used flawed measurements to determine which firm promised the best value. One company also challenged TRANSCOM’s decision that ARC is a “responsible contractor”.

GAO contract analysts recommended that TRANSCOM takes steps to remedy the flaws in the procurement including conducting a new round of oral presentations and discussions, permitting the submission of revised proposals. GAO officials said:  “We also recommended that the agency make a new decision about which of the proposals offers the best value to the government.”

The process now goes back to TRANSCOM, which must revise its procedures before reissuing a new request for proposal. A new RFP will allow all parties – including ARC, the two protesting companies and others – to rebid. The delay means that household goods moves are likely to be handled by USTRANSCOM throughout 2021.

The ARC group consists of the parent company of United Van Lines and Mayflower Transit, called UniGroup; Atlas World Group and Atlas World Group International; the moving companies Suddath and The Pasha Group; and Deloitte. In a statement Team ARC said that it will evaluate its options in light of the Government Accountability Office (GAO) decision and determine the appropriate next steps.

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