A Sole Source Contract for Permanent Change of Station (PCS) Moves Puts Readiness at Risk

by Tim Helenthal

Chairman & CEO @ National Van Lines

I want to share some thoughts regarding the Defense Personal Property Program (DP3) following the recent memorandum from US Secretary of Defense, Pete Hegseth, dated May 20th. The memo addresses some serious issues with the Global Household Goods Contract (GHC) that have been making headlines lately. Many military families are facing challenges, such as not having movers assigned to their shipments or being left in the dark about where their belongings are once picked up. To make matters worse, around 5,700 shipments were returned to the DP3 program at the last minute, just before the busy moving season.

In response to these issues, the memo also announces the formation of a “PCS Task Force” aimed at ensuring our service members, civilian employees, and their families receive top-notch moving services. The Task Force is expected to take swift action to improve, expand, or even change the responsibilities of the GHC as needed.

Over the weekend, I decided to write and share an opinion piece about the challenges of relying on a sole source for all DOD Permanent Change of Station (PCS) moves. While we don’t yet know who will be on the Task Force, I hope that someone on it will see this and take notice.

To kick things off, I revisited an article I co-wrote back in 2019 when I was the Chairman of the International Association of Movers. You can check it out here: The Risks of a Monopoly Managing the DOD Personal Property Program. After reviewing it, I feel that one of the main concerns still stands: there’s a significant lack of a backup plan. We've seen that risk recently and thankfully, the existing DP3 is still operational and ready to step in when needed.

One major issue with the GHC is that it requires a new IT system to communicate with the DOD’s new IT system for awarding shipments and processing payments. If the GHC is fully implemented, we will see the disappearance of Move Managers and Transportation Service Providers (TSPs) who currently handle most domestic relocations. This would leave the DOD without a way to award shipments, no pricing agreements with movers, and no IT system for billing and payments if the sole source contractor fails for any reason. In short, all PCS moves would come to a grinding halt. This isn’t an exaggeration; it’s a real threat.

Just think about the chaos that would ensue if the DOD didn’t have the DP3 infrastructure to fall back on. There would be thousands of service members unable to report to their new duty station, or they would report and be forced to leave their families behind to figure things out on their own. That would directly impact their ability to focus on the new duty assignment. In turn, it would create one of the biggest readiness crises our military has ever faced. Look at the chaos that was created even when there was an easily accessible back-up system in place and just a small percentage of PCS moves were impacted. 

When it comes to an issue that directly impacts readiness, relying on a sole source is too risky. The DOD needs a relocation program that fosters resilience and encourages competition. That’s the key to ensuring stability and providing better service for our military families.

Reprinted by permission.