Continued Fallout Over GHC Cancellation: The Suddath Companies Given 7 Days To Dismiss Bid Protest to Permanently Enjoin and Compel The Re-bid Of GHC Against USTRANSCOM

By:      Gerald D. Borovick

Fallout from the Secretary of the Department of Defense’s recent cancellation of the 2021 Global Household Good Relocation Contract (‘GHC’) with a contract value of up to $17.9B awarded to HomeSafe Alliance, LLC (“HSA”) continued on June 25, 2025, when a Federal judge granted the government’s unopposed motion and ordered a stay of what amounts to a fourth post-award bid protest in an action filed in late 2024 – this time by The Suddath Companies against the United States, by and through the United States Transportation Command (“USTRANSCOM”).

The order recites that Suddath’s bid protest “may be moot” because of “termination of the contract at issue.”  The Suddath Companies v. United States, 24-01836 (Fed. Cl., Doc 80, Jun. 24, 2025, Somers, J.).  The “contract” at issue in the Suddath action is the GHC.

Unless Suddath moves to voluntarily dismiss the action within seven days of his order, the government intends to file a motion to dismiss Suddath’s protest as moot.[1]

Background

The Suddath Companies argue in its complaint violation of law when, after awarding the GHC to HSA, the government allegedly engaged in a course of conduct which constituted “illegal” non-competitive changes to the scope of work of the procurement for the GHC.  Specifically, by claiming certain differences, not part of the original solicitation resulted in a “windfall of additional time and money” to HSA.  Differences include enlarging the time period for “full implementation” of the GHC by at least 34 months; halting the transition of HHG moves for one and one-half years; and $60 million to fund the extended implementation period and cooperative development and implementation of a mobile application on members’ smart-phones.

The gist of Suddath’s protest was to argue, based on its credible claim of extensive, long-standing expertise in managing national and international military moves under the Defense Personal Property Program (“DP3”), that had it known the government would have facilitated a “flexible 3-year-plus transition and government-funded software development effort” after making an award, Suddath could have and would have bid.    Suddath alleges it has “the financial wherewithal to fund the ongoing costs associated with development of technology and execution of the GHC contact” and “would have been able to offer a much more competitive price and better value to the government[.]”

Suddath’s complaint requests a legal declaration that USTRANSCOM’s actions constitute substantial modification of the scope of the GHC without competition in violation of law; to halt USTRANSCOM from further performance under the GHC; and order USTRANSCOM re-issue a new solicitation accurately reflecting USTRANSCOM’s needs.

HSA intervened in the Suddath action to assert claims and defenses.

A hearing was held in March to hear oral argument on the parties’ motions for judgment on the administrative record.

By cancelling the GHC, it would be expected that the Court would conclude Suddath no longer has a cognizable “case or controversy” meriting relief and dismiss the action as “moot.”  In other words, we can expect that there will be no legal decision on the merits of Suddath’s claims.  That being said, HSA in a press release announced disappointment “that it did not have the opportunity to engage with [the DoD’s] Permanent Change of Station Joint Task Force prior to the [GHC] being terminated without warning.”  And, HSA “is considering all legal options available to it.”

What’s Next for DP3 for Military Personnel, Civilian Employees, and Their Families

Major General Lance G. Curtis, U.S. Army is the designated representative to lead a newly created Permanent Change of Station Joint Task Force (“PCS JTF”) with bi-weekly reporting duties to the Secretary of Defense on new guidance for implementation of DP3 and authorization authority to reimburse Personally Procured Moves at either:

100% of the government’s constructed “Best Value” Tender of Service rate; or

130% of the GHC rate.

The Secretary of Defense has given PCS JTF until September 5, 2025, to submit formal recommendations to the Secretary for the long-term reform of “the JTF mission and the DP3 and shall outline a strategic path forward.”

Dated: Sudbury, MA
June 26, 2025

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[1] We wrote about HomeSafe’s successful defense to the government’s award of the GHC to it as the single indefinite delivery, indefinite quantity moving/relocation service provider brought by a different set of protestors, after more than 2 ½ years of legal skirmishing, here.