This announcement primarily impacts those who have invested in KBR, a company that was in a joint venture with HomeSafe Alliance LLC. It also underscores the complexities inherent in the military moving marketplace.
According to DefenseNews.com, KBR is ranked 40th among the top 100 defense contractors, with a turnover of $3 billion in 2023. You can find more details here: https://people.defensenews.com/top-100/
The main challenge faced by HomeSafe was the difficulty in establishing a dependable network of local Transportation Service Providers (TSPs) willing to operate at rates reportedly 20 to 40 percent lower than those under the DP3 system. Additionally, there were obstacles related to the Service Contract Act (SCA).
An article by the American Trucking Association highlights the lack of clear guidance regarding the Service Contract Act, which you can read about here: https://www.trucking.org/news-insights/effectively-serve-our-military-movers-need-clear-guidance-usdol
The military moving industry relies heavily on hundreds of local TSPs, many of which are small businesses. Reducing compensation for these TSPs while simultaneously increasing compliance requirements with the SCA has proven to be problematic, leading to termination of the GHC program.
Since no single company has the economic, physical capacity and manpower resources to act as a single entity to service all US Military moves, any future programs on the horizon will have to consider a bottom up instead of top down approach. From a customer POV, most moves start with a local TSP who packs and ends with another that delivers.
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