Senate Armed Services Committee Holds Posture Hearing

Committee Members and Gen. Reed Review Global Household Goods Contract (GHC) Rollout

Yesterday afternoon, the Readiness Subcommittee of the Senate Armed Services Committee held a posture hearing with TRANSCOM Commander Gen. Randall Reed to review FY 2026 defense program priorities.  

As part of his opening remarks, Subcommittee Chair Dan Sullivan (AK) referenced the need for a seamless transition of the GHC program and requested an update from Gen. Reed on the program’s progress. Gen. Reed noted in his opening remarks that adjustments had been made with respect to moves assigned to the prime contractor, as the program rolls out. 

While acknowledging challenges, he stated TRANSCOM has no doubt they will be overcome, and they remain committed to the GHC. Gen. Reed also stated that the reason for the GHC contract was to correct past performance issues.  

Sen. Rick Scott (FL) asked about capacity concerns with the current program, and why the Army decided to pause moves that did not have enough lead time. In response, Gen. Reed described the GHC as a transformation within a market that still exists, explaining that they are monitoring market trends and were two years into a 10-year contract, which included a six year base, with 4 one-year options. Gen. Reed also emphasized a focus of matching the service member to the right move, and not necessarily tying the move to a vendor or specific program. Gen. Reed noted that international moves will begin at a much later date.

Sen. Tim Kaine (VA) asked Gen. Reed how TRANSCOM planned to manage the legacy program (DP3) and the GHC in the future, given the higher rates for the DP3, and potential reluctance of service providers to participate in the GHC at the current rates. Gen. Reed’s response included references to GHC, the current tender program and government constructed costs.

The reply was frankly confusing, and left some wondering which program Gen. Reed was referring to when he said, the rates (which rates?) are set by what is called a government constructed cost and that TRANSCOM is only able to adjust those rates once per year in May. 

That would certainly seem to align to DP3 tender rates, but the context of the question and other parts of the answer made it less clear. He said they have to wait until May when they have the next opportunity to adjust the rates (“which we will do”). He said those adjusted rates will be more in line with the “constructed cost” and therefore “will be less of an incentive to stay outside, then to join the GHC.” 

Interpret that as you will, and be sure to watch it for yourself. We are seeking clarification and if or when we do, we’ll provide it. A link to General Reed’s written testimony is here.