GAO Wants Transcom to Address Procurement Issues in Military Household Goods Shipping Contract

The Government Accountability Office has recommended that U.S. Transportation Command address the deficiencies in its procurement process that resulted in the award of the potential $7.2B Global Household Goods Contract to American Roll-on Roll-off Carrier Group, Military Times reported Thursday.

GAO sustained the protests HomeSafe Alliance – a joint venture led by KBR (NYSE: KBR) – and Connected Global Solutions filed to challenge Transcom's contract award decision.

GHC, which covers logistics services to support the relocation of defense personnel and their families, was initially awarded on April 30 and re-awarded to ARC in June after GAO denied a protest of the contract award and the command completed its assessment.

Transcom officials told the publication in a statement the command is committed to rectifying acquisition concerns raised by GAO and is “reviewing the GAO comments to determine the way ahead, which will lead to the implementation” of the contract.

Federal News Network reported that Ralph White, managing associate general counsel for procurement law at GAO, said the congressional watchdog recommended that the command carry out discussions with the three offerors, allow them to submit revised bids and redo the evaluation process for the contract.

“We also recommended that the agency make a new decision about which of the proposals offers the best value to the government,” White said. “We noted that if the agency again decides that the proposal submitted by ARC offers the best value, it should perform a new responsibility review, consistent with the findings in our decision.”

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