The Global Household Goods Contract (GHC) was initiated by the U.S. Department of Defense (DoD) to modernize and streamline the process of moving household goods for military personnel. Here's a brief history and summary of its termination:

History of the Global Household Goods Contract

Inception and Goals:

The GHC was created to address long-standing complaints from service members and their families about the inefficiencies and poor service quality in the military moving process. The goal was to transform the military move system by introducing a more centralized and accountable structure.

The contract was awarded to HomeSafe Alliance, a joint venture with KBR, in 2021. KBR is known for its work in government services, particularly with the U.S. Department of Defense, and has been involved in significant infrastructure and logistics projects. The HomeSafe alliance was tasked with managing all aspects of military moves worldwide, aiming to provide a more seamless and reliable service for military families.
Implementation Challenges:

The implementation of the GHC faced numerous challenges from the outset. These included delays, legal challenges, and difficulties in meeting the high demand for moving services. The transition from the legacy "Tender of Service" system to the new centralized model proved to be more complex than anticipated.

The GHC was intended to replace the fragmented legacy system, which involved numerous commercial moving companies. The new contract aimed to consolidate these services under a single management entity to improve accountability and efficiency.

Operational Issues:

Despite the ambitious goals, the GHC encountered significant operational issues. HomeSafe struggled with a lack of moving company capacity within its subcontractor base, leading to delays and service failures. This resulted in many military families experiencing poor service, including delays, no-shows, and communication issues.

The contract also faced criticism for its lack of clear accountability mechanisms. Unlike the legacy system, which had penalties for poor performance, the GHC lacked such provisions, leading to concerns about service quality and reliability.

Termination of the Global Household Goods Contract
Notice of Termination:

On June 18, 2025, the U.S. Transportation Command (TRANSCOM) issued a notice to terminate the GHC with HomeSafe Alliance. The termination was based on HomeSafe's demonstrated inability to fulfill its contractual obligations and deliver high-quality moving services to military personnel and their families.

Immediate Aftermath:

Following the termination, the DoD announced that military moves would revert to the legacy "Tender of Service" contracts in the short term. This decision was made to ensure continuity of service while the DoD explored alternative solutions for household goods moving reform.

The termination of the GHC raised concerns about the reliability and effectiveness of the services provided to military families. It also highlighted the operational difficulties and challenges faced by HomeSafe in managing the contract.

Future Plans:

The DoD has established a task force to develop recommendations for another attempt at household goods moving reform. The task force is expected to deliver its recommendations by September 5, 2025, with the goal of improving the overall moving process for military personnel.

In summary, the Global Household Goods Contract was an ambitious effort to modernize the military moving process, but it faced significant challenges and was ultimately terminated due to operational failures and service quality issues. The DoD is now focused on finding alternative solutions to improve the moving experience for military families.