Military and government moving contracts represent a massive market segment. The Department of Defense moves approximately 400,000 households annually, making it one of the largest sources of moving volume in the United States.
Government contracts provide predictable, substantial volume. However, they come with extensive requirements, compliance obligations, and administrative complexity that make them unsuitable for many movers.
Understanding what government work entails enables informed decisions about whether to pursue this market.
The Government Moving Market
Government moving has several distinct segments.
Military Household Goods
Service members relocate frequently as part of military duty. These Permanent Change of Station moves are coordinated through the Defense Personal Property System.
Military moves follow specific procedures, use standardized pricing, and require compliance with detailed regulations.
Government Employee Relocation
Federal civilian employees relocate for government jobs. These moves are managed differently than military moves but also involve specific requirements and contracting processes.
Government Equipment and Office
Federal agencies relocate offices, equipment, and records. These project-based moves are procured through various contracting mechanisms.
State and Local Government
State and local governments also contract for moving services. These contracts have their own requirements, typically less complex than federal contracts.
Getting Started with Government Work
Entering government contracting requires specific preparation.
Registration Requirements
To bid on federal contracts, you must register in the System for Award Management at SAM.gov. This registration requires various business information and certifications.
SAM registration is free but takes time to complete. Start the process well before you intend to bid on contracts.
You will receive a Unique Entity Identifier during registration. This identifier is used throughout government contracting.
GSA Schedule Consideration
The General Services Administration maintains schedule contracts that simplify procurement for agencies. Getting on a GSA schedule can provide access to government customers but involves its own application process.
GSA schedules are not required for all government work but provide advantages for certain contract types.
Small Business Certifications
Various small business certifications provide advantages in government contracting. Woman-owned, veteran-owned, HUBZone, and 8(a) certifications each have specific benefits.
If you qualify for certifications, they can significantly improve your competitive position.
Insurance and Bonding
Government contracts often require insurance levels above commercial requirements. Performance bonds and payment bonds may be required.
Ensure you can obtain required insurance and bonding before pursuing government contracts.
Military Move Requirements
Military household goods moves have extensive requirements.
Program Structure
Military moves are managed through programs that have evolved over time. Understanding current program structures and requirements is essential.
The Department of Defense periodically changes how military moves are managed. Stay current on program structures.
Rate Setting
Military move rates are negotiated and set through specific processes. Pricing flexibility is limited compared to commercial markets.
Understand rate structures before committing to military work. Ensure rates provide acceptable margins given compliance costs.
Quality Assurance
Military moves are subject to quality assurance programs that track performance metrics, inspect operations, and impose consequences for poor performance.
Performance problems can affect your ability to obtain future contracts. The government takes quality seriously.
Claims Processing
Military move claims follow specific procedures. Understanding and following these procedures is essential for managing claim exposure.
Administrative Requirements
Military moves involve substantial paperwork. Inventory, weight documentation, shipping documentation, and various reports are required.
Administrative capability to handle documentation requirements is essential. Missing or incorrect documentation creates problems.
Compliance Requirements
Government contracting involves extensive compliance requirements.
Labor Standards
Government contracts typically require compliance with labor standards including prevailing wage requirements, overtime rules, and worker protections.
These requirements may exceed what you follow for commercial work.
Security Requirements
Some government work requires security clearances for personnel. Background checks and investigation processes take time.
Plan ahead if you will need cleared personnel.
Equal Opportunity
Government contractors must comply with equal opportunity requirements. These include affirmative action plans for larger contractors.
Reporting Requirements
Various reporting requirements apply to government contractors. Financial reporting, performance reporting, and compliance reporting all may be required.
Systems to generate required reports are essential.
Records Retention
Government contractors must retain records for specified periods, often longer than commercial requirements.
Records management systems must accommodate retention requirements.
Advantages of Government Work
Government work offers several advantages despite complexity.
Volume Predictability
Government contracts often provide predictable volume. Knowing what volume to expect enables better planning.
Payment Reliability
Government payment is reliable, though sometimes slow. Payment risk is essentially zero once contracts are properly executed.
Long-Term Relationships
Government contracts often extend for multiple years with option periods. Relationships can last many years.
Off-Peak Demand
Military moves occur year-round with peaks that do not always align with residential peaks. Government work can fill capacity during residential slow periods.
Challenges of Government Work
Government work also presents challenges.
Compliance Costs
Meeting compliance requirements costs money. Administrative overhead, insurance costs, and documentation requirements all consume resources.
Calculate whether contract pricing covers compliance costs before committing.
Administrative Burden
Government work involves substantial administration. Small companies may find the administrative burden disproportionate to revenue.
Rate Limitations
Government rates are negotiated within constraints. The flexibility to price for profit that exists in commercial markets may not exist in government work.
Cash Flow
Government payment can be slow. Net 30 or slower payment terms create cash flow challenges, especially at volume.
Quality Scrutiny
Government quality programs impose scrutiny that commercial customers do not. Performance problems have consequences beyond individual transactions.
Deciding Whether to Pursue
Government work is not for everyone. Consider these factors.
Scale Assessment
Government contracting generally makes more sense at scale. The fixed costs of compliance are better absorbed by larger operations.
Small companies may find compliance costs consume too much of contract revenue.
Capability Assessment
Evaluate whether you have or can build the capabilities government work requires. Administration, systems, personnel, and insurance all matter.
Gaps in capability create problems during contract execution.
Strategic Fit
Consider whether government work fits your strategic direction. Some companies build around government work. Others find it a distraction from more profitable commercial focus.
Competitive Position
Assess your competitive position. Markets with many established government contractors are harder to enter than underserved areas.
Small business certifications may provide advantages that improve competitive position.
Getting Help
Navigating government contracting complexity often benefits from expert help.
Procurement Technical Assistance Centers
PTACs provide free assistance to businesses interested in government contracting. They can help with registration, opportunity identification, and proposal development.
Every state has PTAC coverage. Find yours through the PTAC website.
Small Business Administration
SBA provides resources for small businesses pursuing government contracts. Various programs support government contracting preparation and success.
Consultants
Specialized consultants help companies enter and succeed in government contracting. Their expertise can accelerate learning and avoid costly mistakes.
Consider consultant help for significant government contracting initiatives.
Legal Counsel
Government contracts have legal implications. Attorney review of contracts and compliance programs is advisable.
Legal problems in government contracting can be severe. Proper legal guidance prevents them.
Conclusion
Government and military moving contracts offer substantial volume and predictable business. However, they come with compliance complexity, administrative burden, and rate constraints that make them unsuitable for many movers.
Carefully assess whether government work fits your company before investing in the capability to pursue it. The commitment required is substantial.
For companies that make the commitment and build the capability, government work can provide a foundation of reliable business that supports overall company growth.
Disclaimer: This content provides general information about government and military moving contracts. Government contracting involves extensive regulations and requirements that change over time. This information should not be considered professional government contracting or legal advice. Consult with government contracting specialists and legal counsel for guidance specific to your situation and the current regulatory environment.