Yesterday, Gen. Jacqueline Van Ovost publicly testified before the House Armed Services Committee during a hearing on the Posture and Readiness of the Mobility Enterprise. Here are the main takeaways from that testimony.
Recognizing that our service members deserve a quality PCS process, Congressman Mike Waltz (R-FL), Chairman of the Subcommittee on Readiness, used his opening remarks to voice concerns about a “single point of failure in the new contract.”
Unfortunately, in her responses to questions regarding the Global Household Goods Contract (GHC), the TRANSCOM commander did not address the many specific concerns raised by the industry and leaders on Capitol Hill.
Gen. Van Ovost failed to address the legitimate industry concern that the GHC’s implementation of the Service Contract Act (SCA) will force independent owner-operators to become employees in order to haul military shipments. When asked by Congressman Brad Finstad (R-Minnesota) whether the DOD is moving away from independent contractors to haul freight and household goods, the General pivoted in her response to say that all are welcome to participate in the GHC and pointed to the contract requirement that 40% of the funds go to small business.
In fact, the contract would require independent owner-operators to conduct business as employees if they want to continue hauling military shipments.
Congressman Mark Veasy (D-Texas) also asked the General a series of questions about the GHC, including how the 14 test bases were selected, what steps are being taken to ensure the new program is effective, how the new system will handle claims, and when the program will be rolled out to 99% of customers.
The shortage of substance and clarity in these answers left many in the industry concerned. Take a look for yourself …
Here’s the LINK TO THE HEARING.
Points of interest:
1:29:30 to 1:31:30 – Congressman Brad Finstad (R-Minnesota) asks about the fate of independent owner-operators.
At 1:40 to 1:44:30 – Congressman Mark Veasy ( D-Texas) asks a series of questions about GHC.
Our independent owner-operators, military families, and taxpayers deserve better. Please help us spread the word by sharing this email and our website with your colleagues.
