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SCOTT AIR FORCE BASE, Ill. -- U.S. Transportation Command announced its decision to re-award the Global Household Goods contract, valued at $7.2 billion, to American Roll On Roll Off Carrier Group (ARC), of Parsippany, New Jersey, June 29.
ARC was originally awarded the GHC contract April 30, as they provided the best value proposal. Read the April 30, news release here.
A subsequent protest alleged that ARC violated Federal Acquisition Regulations by failing to disclose that its parent corporation pled guilty to fraud and anti-trust violations and that three of its owner’s executives were indicted for price fixing.
The Department of Justice confirmed ARC and its parent company, Wallenius Wilhelmsen ASA (WWASA), were not part of the 2016 conviction for Sherman Anti-Trust violations. A separate company with a similar name, Wallenius Wilhelmsen Logistics AS (WWLAS) was convicted. After extensive independent review, USTRANSCOM determined that the corporate misconduct was not affiliated with ARC nor its parent company.
In 2016, the company WWLAS pled guilty to Sherman Anti-Trust violations, paid more than $98 million in fines, and three of their executives were indicted. WWLAS has no ownership or control over ARC and is a separate corporate entity.
During its proposal submission, ARC erroneously listed WWLAS, instead of WWASA, as corporate owner in the pulldown menus of the Government’s System of Award Management (SAM).It appeared to the protestor that ARC failed to meet FAR disclosure requirements when, in actuality, the true parent company was misidentified. Minor errors in SAM are not grounds for disqualification.
Since neither ARC, nor its parent company WWASA, have a record of misconduct, USTRANSCOM substantiated its original award to ARC because its proposal provided the best service for the best value for Service members, Department of Defense civilians and their families.
USTRANSCOM exists as a warfighting combatant command to project and sustain military power at a time and place of the nation’s choosing. On behalf of the DOD and the Services, USTRANSCOM is leading a major reform effort to improve the Defense Personal Property Program for service members and their families.
For more information contact USTRANSCOM Public Affairs: (618) 220-4999 or transcom-pa@mail.mil
