Information Papers

Full Replacement Value and Defense Property System

What is it?
The John Warner National Defense Authorization Act for 2007 mandated that the Department of Defense (DoD) provide full-replacement-value (FRV) coverage for household goods (HHG) shipments by Mar. 1, 2008. All Services implemented FRV effective Oct. 1, and Nov. 1, 2007, for international and domestic shipments, respectively. With FRV, HHG carriers will replace lost or destroyed items with new items or pay for a new item of the same kind and quality at no additional cost to the Soldier. The HHG carrier is liable for the either $5,000 per shipment or $4.00 times the net weight of the shipment in pounds (up to $50,000), whichever figure is greater.

The new Defense Personal Property System (DPS) is Web-based software for the Families First Program. In addition to FRV, the DPS will provide the following enhancements:

What has the Army done?
Since the late 1990s, the Army has actively participated in numerous HHG pilots leading to the establishment of a future blueprint system called Families First DPS Program. The Deputy Chief of Staff G-4, has a key vote in all in-process review meetings, software review or control boards, and general officer steering committees to ensure synchronization of all business rules, policies, and software changes so as to arrive at a consensus for DoD stakeholder decisions. The Army has supplemented the DPS Joint Project Management Office with functional software testers from many of our Army installations to ensure the system will work upon fielding. The Army’s FY 09 Program Budget Estimate Submission includes $65 Million for FRV and the Families First DPS Program in support of the 13 percent increase in industry rates.

What continued efforts does the Army have planned for the future?
Seven Army Personal Property Shipping Offices located in Grafenwoehr, Germany; Camp Zama, Japan; Fort Belvoir, Virginia; Fort Bragg, North Carolina; Fort Sill, Oklahoma; Fort Leavenworth, Kansas; and White Sands Missile Range, New Mexico, have volunteered as initial fielding sites beginning in April 2008. The full DPS rollout target calls for an additional 38 Army installations by the end of 2008.

Why is this important to the Army?
The Army fully supports the efforts of the FRV and Families First Program to streamline every move made by our Soldiers and their Families, deeming it an improvement in the quality of life conducive to increased retention and readiness of the All-Volunteer Force. Another ongoing initiative the Army is pursuing with the other services is an increase in the HHG weight allowance and authorization for the transportation of two privately owned vehicles in orders for an accompanied permanent change of station to locations outside of the continental United States.

Ms. Jolie Lay