Hegseth Calls for Military Reform to Tackle Operational Shortcomings

Defense Secretary pete Hegseth is calling for urgent changes to the $17.9 billion military Global Household Goods (GHC) moving contract, urging the U.S. Transportation Command to tackle existing issues so that military personnel and thier families can have smoother relocations this summer.

“it’s essential for our personnel to be positioned effectively to safeguard our nation,” Hegseth emphasized in a memo directed at senior Pentagon officials on may 20. “Facilitating these moves is vital for our military operations and ensures that expertise is where it’s most needed.”

Lately, there’s been growing anxiety about the GHC contract not meeting expectations. Many military moves are reverting back from the new program’s “single-point-of-contact” system to the older “Tender of Service” model that HomeSafe Alliance was supposed to replace.

in his memo, Hegseth outlined several immediate steps for Transcom leadership:

• Ensure both GHC and Tender of Service programs meet performance benchmarks with weekly updates provided to defense acquisition leaders.
• Utilize both GHC and legacy tos systems fully during peak moving season in 2025.
• If necessary, shift unserviced GHC shipments into ToS due to capacity issues.
• evaluate potential Economic Price Adjustments within the GHC contract as needed.
• Create a permanent task force focused on permanent change of station logistics under the Under Secretary of Defense’s guidance.

This memo follows earlier concerns raised by industry stakeholders regarding transparency in how Transcom has managed GHC implementation. The American Trucking Associations (ATA) has pointed out that without clear interaction from Transcom,moving companies struggle with planning necessary investments for future capacity under either program.

“We’re asking your office for clearer notifications regarding moving operations,” said Dan Hilton, Executive Director of ATA’s Moving and Storage Conference in a letter dated May 6 addressed to transcom. “This request stems from reported difficulties faced by contractors during peak season.”

Praising Hegseth’s proactive approach, Hilton remarked on how crucial timely and dependable moves are for service members’ well-being. He also highlighted ongoing disparities between compensation levels and quality standards between ToS and GHC contracts as areas needing attention.
 “We’ve seen many shipments being shifted back into ToS with little notice or reduced pay—this impacts service members significantly,” he added.
 The situation has caught political attention too; three U.S senators recently voiced their worries about potential disruptions caused by this transition process.
Democratic Senators Mark Warner (VA), Tim Kaine (VA), and Michael bennet (CO) expressed appreciation towards efforts made so far but cautioned against anticipated delays affecting service members’ relocations due largely because of high volumes expected soon.
thay stated in a letter sent on May 1: “While we commend actions taken thus far aimed at easing impacts during this transition period…we remain concerned about possible disruptions ahead.”
Tune into today’s briefing below or check here for more details: