US Government Military Contract HomeSafe Alliance

Good day folks,

In the United States, a company named HomeSafe Alliance (HomeSafe) has been contracted to handle moves for the US military. Some of you may be aware of the issues surrounding this contract award and its subsequent roll-out.

We have been informed by one of our agents that HomeSafe is currently attempting to roll out the international business component and is reaching out to Canadian companies to perform origin and destination work.

We strongly advise you to exercise due diligence if you consider working with HomeSafe. From our understanding, the contract is significantly one-sided and includes onerous terms and impractical procedures such as:

• The term of the contract is indefinite. While the base period is three years, HomeSafe has the option to extend the contract for five additional one-year terms. The service provider has no option for early termination for convenience.
• HomeSafe can cancel shipments up to the day of pickup without compensation to the service provider.
• HomeSafe has absolute discretion concerning claims settlement, including allocating shared liability. Service providers’ limitation of liability for cargo does not apply to lost items and can be negated for numerous reasons, resulting in 100% responsibility for the service provider.
• HomeSafe can apply offsets against a service provider for any amount it deems due without prior notice.
• The insurance requirements are extensive, and service providers are required to provide a financial guarantee.
• All service providers must utilize HomeSafe technologies without system APIs, resulting in duplication of data entry.
• Compensation at this point remains undefined.

Finally, we have also been informed that HomeSafe may be allowing service providers to work without a formal MSA or other agreement in place. Please be advised that operating without a formal agreement places undue risk on your company and may result in unnecessary claims exposure or other liabilities.

We will continue to monitor the situation with HomeSafe and will provide updates as changes unfold.

Yours truly,

Fred Haladay

President & COO

Atlas Canada