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With peak military moving season in full swing, Defense Secretary Pete Hegseth has ordered immediate changes to the system that moves troops’ household goods, in light of “recent deficiencies” in the performance of the new Global Household Goods Contract, according to a Pentagon memo.
That includes increasing the reimbursement rate for troops and families who decide to move all or part of their household goods themselves to 130% of what the government would have paid under the GHC contract for personally procured moves made May 15 through Sept. 30. The rate is currently 100%.
“I take my responsibilities to our service members, civilians and their families seriously,” Hegseth wrote in a May 20 memo to senior Pentagon leaders, combatant commanders and defense agencies.
The new contract, worth potentially up to $17.9 billion over nine years, is aimed at fixing long-standing problems with missed pickup and delivery dates, broken and lost items and claims. However, amid the contract’s rocky rollout this year, families have reported delays in getting their household goods picked up and delivered.
“We know it’s not working and it’s only getting worse. We’ve heard your concerns about contractor performance quality and accountability. We hear you loud and…
The household goods segment of the motor carrier industry is particularly challenging and, increasingly, a gating issue for new and innovative last mile or Do-It-Yourself service offerings. Understanding whether the statutory and regulatory requirements associated with household goods services are triggered can have direct implications on the viability of a commercial offering, its price, and the precise operational requirements. If a service constitutes household goods moving then the world of antiquated pre-deregulation legal requirements and significant consumer protection regulations apply to the provider, whether as a motor carrier or broker.
Definitional Matters
The basic question of whether a service offering triggers the statutes and regulations applicable to household goods service begins with the definitions set forth at 49 USC § 13102. The net effect of statutory definitions is that the determination of household goods regulation principally turns on the nature of the service rather than the nature of the commodity.
Household goods are defined essentially as “personal effects and property used or to be used in a dwelling” and “similar property if arranged and paid for by the householder” or “arranged and paid for by another party.” On its face this is an incredibly broad definition that includes almost any…
A limited number of troops and their families are about to see the fruits of U.S. Transportation Command’s efforts to improve how household goods are shipped during military moves.
Within a few weeks, officials will announce five locations where they will begin assigning some troops’ household goods shipments to HomeSafe Alliance, the new contractor that will manage the flow of belongings around the world.
The new system is designed to improve troops’ ability to communicate with their moving company, provide information about the location of their belongings throughout the transit, and improve the claims process. And the Defense Department promises more accountability if things go wrong during a move, like broken or lost items or missed pickup and delivery dates.
“Every single move is important to us. Every service member and family deserve a good quality move, a professional experience, and one that’s free of stress,” Andy Dawson, director of the of the Defense Personal Property Management Office at TRANSCOM, said during a call with reporters Tuesday. “We couldn’t be more excited to move into the next phase and start executing shipments.”
Last year, TRANSCOM officials delayed plans to phase in shipments under the new contract while the Defense Department…