June 24, 2025<\/p>\n\n\n\n
Major General Lance Curtis
PCS Task Force Commander
1 Soldier Way
Scott AFB, IL 62225<\/p>\n\n\n\n
MG Curtis,<\/p>\n\n\n\n
The International Association of Movers (IAM) appreciates the decisive action taken last week on theGlobal Household Goods Contract (GHC). As you might imagine, many across the industry are now questioning: \u201cWhat\u2019s next?\u201d<\/p>\n\n\n\n
As we called for in our letter dated May 22, 2025, IAM believes it is critically important to align the Tender of Service (ToS) program with Secretary Hegseth\u2019s memo dated May 20, 2025<\/a>, \u201cto ensure maximum coverage for moves during the 2025 peak season\u201d. Increasing the DP3 domestic tender rates to attract additional capacity for summer moves is the most impactful action TRANSCOM could take now to ensure quality capacity is available through the 2025 peak season.<\/p>\n\n\n\n The current DP3 rates are a product of TRANSCOM\u2019s \u201cRate Reasonableness\u201d strategy which it uses to determine the rates allowed to be filed in the DP3 program even though it is not benchmarked against any known relocation market cost analysis. TRANSCOM used this mechanism to drive movers into the GHC when it was already clear GHC rates were not viable. Gen. Reed confirmed this strategy when he testified that,<\/p>\n\n\n\n “So the rates are set by what we call a Government Constructive Cost and we are only able to adjust those rates once a year which actually happens in May. So once again we\u2019re in a situation where to allow the process to go we have to wait until May when we have the next opportunity to adjust the rates, which we will do. Those rates will be more in line with the Constructive Cost so therefore there will be less of an incentive to stay outside than to join the GHC.1<\/sup>“<\/em><\/p>\n\n\n\n As a result of this approach, we’re hearing directly from DP3 providers who are struggling to find sufficient labor and driver capacity. The rates movers filed in Round One (which were rejected) give a window into what they believed was needed to meet demand. Furthermore, the recent change in how the fuel surcharge is calculated\u2014out of step with other SDDC freight programs and other moving markets\u2014 has further hampered driver recruitment. Looking beyond the 2025 peak season, IAM believes there is a real opportunity to set the Defense Personal Property Program (DP3) on a sustainable path \u201cto support fully our military and civilian families.\u201d The shift to a FAR-based, single-prime contractor model has proven unsuccessful. For success going forward, TRANSCOM should engage with industry experts (select TSPs, Move Managers, Agents, IAM) to solidify the future of DP3.<\/p>\n\n\n\n For industry, the GHC outcome was not surprising. In 2019, IAM published a series of white papers outlining our concerns with the single-prime contractor approach. These papers were written at the outset of the GHC initiative, without the benefit of hindsight. If you or the PCS Task Force are interested in revisiting those original industry perspectives, they remain available here: IAM White Papers<\/a>.<\/p>\n\n\n\n Despite its misgivings with the GHC, the industry continued to deliver for the military family despite the attempt to create a narrative that the industry was failing. At early GHC \u201cIndustry Days,\u201d attendees were told that movers were falling short compared to logistics giants like FedEx and Amazon. That comparison fell short then and it falls short today. Unlike those companies, movers enter customers\u2019 homes, handle all their belongings, and ensure safe delivery. Despite this complexity, satisfaction levels for DoD household goods moves exceed those of FedEx, UPS, USPS2<\/sup>, and even Amazon3<\/sup>. TRANSCOM\u2019s own data shows that the tender program has consistently delivered with over 89% of service members rating their experience as satisfactory or better over the past year, and many months exceeding 90%.<\/p>\n\n\n\n We fully agree that our service members deserve the very best, and we share the belief that the DoD\u2019s moving program must continue to evolve. A single-prime contractor model has now been tried and failed due to its lack of competition, resiliency, and contingency planning. By contrast, the tender program has repeatedly stepped in to stabilize the transition to the GHC over the past six years, delivering reliable performance and demonstrating its value. IAM believes a modernized, adaptive tender-based approach offers proven advantages: quality service, flexibility, institutional knowledge, and built-in continuity.We recognize the complexity and importance of the work ahead, and IAM and our member companies stand ready to support the Task Force in any way that may be helpful.<\/p>\n\n\n\n Respectfully,<\/p>\n\n\n\n Brian Limperopulos <\/p>\n\n\n\n 1<\/sup> Gen. Randall Reed, Commander, U.S. Transportation Command, Testimony before the Senate Committee on Armed Services, (March 5, 2025)<\/a><\/p>\n\n\n\n 2<\/sup> ACSI, Retail and Consumer Shipping Study 2024\u20132025<\/a>, Jan. 2025, at p. 15 <\/p>\n\n\n\n 3<\/sup> Statista, \u201cU.S. Customer Satisfaction with Amazon.com<\/a>,\u201d citing data from ACSI, (accessed June 24, 2025)<\/p>\n\n\n\n <\/p>\n\n\n\n
President
International Association of Movers<\/p>\n\n\n\n
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