Bundling_Notification.pdf

UNITED STATES TRANSPORTATION COMMAND

508 SCOTT DRIVE

SCOTT AIR FORCE BASE, ILLINOIS 62225-5357

22 May 2019

SUBJECT: Global Household Goods Contract (GHC) Notice to Small Businesses of Government’s intent to consolidate and bundle requirements

1. Service Members experience challenging and stressful permanent change of station (PCS) moves every few years. To support these PCS moves, each year the Department of Defense (DoD) relies on over 900 Transportation Service Providers (TSPs) —managed by 42 regional shipping offices— to relocate over 400,000 household goods shipments for personnel in support of national security objectives. Perhaps the most stressful portion of the relocation process involves shipping household goods. Roughly 40% of these moves occur each year between 15 May and 31 August. This “Peak Season” occurs because personnel relocation actions balance operational and training requirements to reduce impacts to families. However, the volume of personnel relocations strains available capacity.

2. Under the current construct we are unable to provide the quality capacity and accountability DoD customers deserve. An internal program review and a survey of decades of studies on the topic reveal three underlying issues: 1) quality capacity is lacking; 2) DoD has limited accountability measures to drive improvements, and; 3) Defense Personal Property Program (DP3) customers do not know who to call when things go wrong. DoD has made marginal improvements over the years, but the changes required to truly address these systemic issues have not been enacted. To address these issues, USTRANSCOM, on behalf of the DoD, is leading an effort to fundamentally restructure DoD’s relationship with industry in a manner that promotes stability and investment, and do so in a manner that eliminates the gaps and seams that generate unnecessary friction and opacity for DP3 users.

3. USTRANSCOM has begun the formal acquisition process to award end-to-end household goods transportation to a single move manager in time for the 2021 peak season. This fundamentally changes the way we manage capacity and quality. Rather than relying on 42 separate offices to award individual shipments to 900+ carriers on a transactional basis, we seek a multi-year relationship which will provide industry with both the confidence and rationale to invest in capacity and strategic relationships with trusted suppliers to meet peak demand.

4. In accordance with Federal Acquisition Regulation (FAR) 7.107-5 you are hereby notified that the Government intends to bundle requirements under solicitation HTC711-19-R-R004, Global Household Goods Contract (GHC). The scope of this requirement is (1) move counseling for personal property (household goods, unaccompanied baggage and personally procured moves, as defined in the Joint Travel Regulation (JTR)); (2) assigning the shipment for movement; (3) traffic management and administration, including customs clearance; (4) shipment packing and unpacking, loading and unloading; (5) in-transit visibility (ITV); (6) operation of secure Storage in Transit (SIT) facilities; (7) pickup and deliver shipments to/from Non-Temporary Storage (NTS) facilities; (8) claims processing and resolution; (9) invoicing; (10) reporting. Contracts subject to bundling under this procurement include service owned Direct Procurement Method

(DPM) contracts, service-owned contracts for counseling services, and tenders currently issued under the USTRANSCOM managed Tender of Service (TOS) program. This memorandum serves as the minimum 30-day notice prior to release of solicitation.

5. Small business participation will continue to be an integral aspect under this construct and we seek to implement this contract in a manner that maximizes small business capacity. Under the GHC solicitation, as indicated in the most recent draft solicitation posted to the Federal Business Opportunities (FBO) website on 11 April 2019, offerors will be required to submit a small business subcontracting plan that includes goals focusing on the types of services and dollars to be subcontracted to small business concerns. The following matrix contains suggested Tier 1 small business subcontracting target goals to assist offerors in the development of their subcontracting plan, and will be included in the GHC solicitation.

CATEGORY TARGET GOAL

Small Business 23% Small Disadvantaged Business 5% Women-Owned Small Business 5% Veteran-Owned Small Business 3% Service-Disable Veteran Owned Small Business 3% HUBZone Certified Small Business 3%

In FAR-based contracting, subcontracting goals only apply at the Tier 1 subcontractor level. In an effort to require maximum small business participation at all levels (I.e., Tier 2, 3, etc) during performance of the contract, the solicitation and resultant contract will also include a subcontracting requirement where the combined Tier 1, Tier 2, and Tier 3 small business and socioeconomic concerns subcontracted dollars shall be a minimum of forty percent (40%) of the total acquisition value of the domestic work performed under the contract. The contractor will be required to produce documentation substantiating compliance with this requirement.

6. To that end, far from excluding small businesses, we seek to eliminate the barriers of entry small businesses face with the existing program’s over-engineered rule set and view this as a growth opportunity for small businesses to meet our current demand.

7. Questions regarding this notification should be directed to Ms. Maria Galloway, Procurement Center Representative (PCR) at maria.galloway@sba.gov or 618-418-6072 or Ms. Suzanne Mudd-Yarber, Director of Small Business Programs for USTRANSCOM at transcom.scott.tcaq.mbx.sb@mail.mil or 618-220-7929.

Amy M. Miller Contracting Officer Directorate of Acquisition mailto:maria.galloway@sba.gov mailto:transcom.scott.tcaq.mbx.sb@mail.mil