U.S. Transportation Command officials have confirmed their award to a New Jersey company of a $7.2 billion contract to outsource management of service members’ household goods, according to a statement from the command.
Allegations made against the company, American Roll On Roll Off Carrier Group, of Parsippany, N.J., were “unsubstantiated,” TRANSCOM officials said, resulting in the confirmation of the award Monday.
The $7.2 billion contract covers a nine-month transition period and three-year base period. But if all the options are exercised, the contract will be worth about $20 billion over nine years. The contract doesn’t affect service members’ moves currently under way; all household goods moves will continue under the current system, managed by TRANSCOM, until February, 2021.
“Team ARC remains committed to our proposal to provide exceptional customer service to TRANSCOM and the service members,” said ARC CEO Eric Ebeling, in a statement. “We look forward to getting started on the [Global Household Goods Contract.]”
TRANSCOM had previously pulled back the contract for the review, and notified the Government Accountability Office (GAO) of its intent to review the allegations on June 9.
Also see: TRANSCOM offers explanation for reversal on corrective action, but it’s difficult to square with publicly-available evidence at: https://federalnewsnetwork.com/dod-reporters-notebook-jared-serbu/2020/07/dods-7b-household-goods-contract-takes-an-even-stranger-turn/