Hegseth orders immediate changes to troops' household goods program
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 clear. That's why we're taking decisive action immediately,' Hegseth said in a video posted on X. He described the process as 'a mess,' and acknowledged 'it's never been a great system.'
The current GHC rates 'fail to reflect market rates,' Hegseth said. He's ordered a review of the rates being paid to movers under both the new GHC system, which consolidates management under a single contractor, HomeSafe Alliance, and the legacy system, in an effort to ensure enough companies participate in moving troops' household goods. And since the rates for reimbursing service members for moving themselves are tied to those GHC rates, Hegseth ordered the increase to 130% of the GHC rate for personally procured moves.
Hegseth has directed U.S. Transportation Command to hold both the GHC and the legacy moving program 'accountable' and to provide weekly updates to the offices of the undersecretary of defense for personnel and readiness and undersecretary of defense for acquisition and sustainment.
He's also ordered both of those offices to form a PCS task force to 'act decisively to improve, expand, terminate or transfer GHC or [legacy program] responsibilities as needed,' according to the memo.
'We're going to fix it holistically after peak moving season, and we're going to throw the kitchen sink at it to make sure your moves work this season as well,' Hegseth said.
TRANSCOM, which had been gradually ramping up the volume of the moves with HomeSafe Alliance, since April 2024, had expected to move all domestic shipments under the new contract by this year's peak moving season, but they scrapped that plan earlier this year as problems began to mount with HomeSafe Alliance's ability to provide enough capacity to pack, load, truck and unload service members' belongs.
Season of Uncertainty: Many questions remain as peak military moving time approaches
In the meantime, officials are continuing to use both the new GHC system and the legacy system to move people, in an effort to ensure there are enough movers.
Hegseth also said he fired Andy Dawson, the civilian head of the program, replacing him with a two-star general, Army Maj. Gen. Lance G. Curtis, commander of the Military Surface Deployment and Distribution Command, who will report directly to Hegseth. Defense officials have had multiple meetings about the problem over the past few weeks, Hegseth said.
A number of moving companies have declined to participate in the new GHC system, citing lower rates than they've been traditionally paid. When GHC can't find a mover for a service member's belongings, it turns the shipment back to TRANSCOM, and the shipment goes to a mover in the legacy system. At least 5,700 shipments have had to be turned away from GHC, according to the most recent estimate. But movers have complained that legacy system rates released earlier this month are also lower than those of previous years, further contributing to a lack of capacity to move household goods.
'It's a season of instability' for moving companies, said Dan Bradley, vice president of government and military relations for the International Association of Movers. It's been difficult for moving companies to plan for the season and make important decisions such as buying more trucks and hiring personnel, especially since until recently they were under the impression that 100% of DOD moves would be made under GHC, he said.
'They want to support service members in those moves,' he said, but it's difficult to turn around at the drop of a hat. 'They're doing the best they can. They want to stay in the program.'
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