Federal Express awarded $689K contract by GAO for courier services, highlighting government reliance on established logistics providers

Contract Overview

Contract Amount: $688,971 ($689.0K)

Contractor: Federal Express Corporation

Awarding Agency: Government Accountability Office

Start Date: 2023-04-01

End Date: 2027-03-31

Contract Duration: 1,460 days

Daily Burn Rate: $472/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: AWARD: IS IN ACCORDANCE WITH FAR 16.505 (B) (2) UNDER ACQUISITION GATE WAY - NEXT GENERATION DELIVERY SERVICES (NGDS) GOVERNMENT-WIDE ACQUISITION CONTRACT (GWAC). ALL INVOICES ARE TO BE E-MAILED, ON A WEEKLY BASES TO: FRANKSJ1@GAO.GOV

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20001

State: District of Columbia Government Spending

Plain-Language Summary

Government Accountability Office obligated $688,971.32 to FEDERAL EXPRESS CORPORATION for work described as: AWARD: IS IN ACCORDANCE WITH FAR 16.505 (B) (2) UNDER ACQUISITION GATE WAY - NEXT GENERATION DELIVERY SERVICES (NGDS) GOVERNMENT-WIDE ACQUISITION CONTRACT (GWAC). ALL INVOICES ARE TO BE E-MAILED, ON A WEEKLY BASES TO: FRANKSJ1@GAO.GOV Key points: 1. The contract leverages an existing Government-Wide Acquisition Contract (GWAC), indicating a streamlined procurement process for common services. 2. The firm-fixed-price structure suggests a clear understanding of costs and a defined scope of work. 3. The award to a well-known logistics provider like Federal Express implies a focus on reliability and established performance. 4. The duration of the contract (4 years) suggests a need for ongoing, consistent delivery services. 5. The exclusion of sources in the competition type, despite being under a full and open GWAC, warrants further investigation into the specific justification.

Value Assessment

Rating: good

The award amount of $688,971.32 for a four-year delivery services contract appears reasonable given the provider and the nature of the service. Benchmarking against similar GWAC orders for courier and express delivery services would provide a more precise value assessment. The firm-fixed-price contract type helps control costs for the Government Accountability Office (GAO).

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under the Next Generation Delivery Services (NGDS) GWAC, which is a government-wide contract vehicle designed for full and open competition. While the specific award mechanism is FAR 16.505(b)(2) under the GWAC, the underlying GWAC itself was competed. The number of bidders on the original GWAC was four, suggesting a competitive landscape for establishing the contract vehicle. The specific order under this vehicle likely involved a streamlined process among pre-qualified vendors.

Taxpayer Impact: Utilizing a competitive GWAC ensures that the government benefits from pre-negotiated terms and pricing, which generally leads to better value for taxpayers compared to individual sole-source procurements.

Public Impact

The primary beneficiary is the Government Accountability Office (GAO), which will receive reliable courier and express delivery services. This contract ensures the timely and secure transport of documents, packages, and other critical materials for GAO's operations. The services are geographically focused on the District of Columbia, where GAO is headquartered. The contract supports the operational needs of the federal government by ensuring essential logistical functions are met.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'Except Comptroller General' designation for the task order might indicate specific internal controls or review processes that could add administrative overhead.
The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' is a complex procurement term that requires careful review to ensure the exclusion was justified and did not limit competition unnecessarily.

Positive Signals

Awarding to Federal Express, a major logistics provider, suggests a high likelihood of reliable and timely service delivery.
The use of a GWAC streamlines the procurement process, potentially reducing administrative burden and costs for the agency.
The firm-fixed-price contract type provides cost certainty for the government.

Sector Analysis

This contract falls within the 'Couriers and Express Delivery Services' sector, a critical component of the broader logistics and transportation industry. The federal government is a significant consumer of these services, relying on them for everything from inter-agency mail to the transport of sensitive documents and equipment. Spending in this sector is often characterized by a mix of large, established providers like Federal Express and smaller, specialized couriers, with GWACs serving as a common procurement vehicle to aggregate demand and ensure competitive pricing.

Small Business Impact

This contract was not set aside for small businesses, as indicated by `sb: false`. Federal Express Corporation is a large business. There is no explicit mention of subcontracting requirements for small businesses within the provided data. Therefore, the direct impact on the small business ecosystem from this specific award appears minimal, though Federal Express may engage small businesses in its broader supply chain.

Oversight & Accountability

The contract is managed under the Government Accountability Office (GAO) itself, which inherently provides a high level of internal oversight. The award is made under a GWAC, which typically has its own oversight mechanisms. The firm-fixed-price nature of the contract aids in financial oversight. Further transparency would be assessed by reviewing the specific justifications for the award and any reporting requirements associated with the GWAC.

Related Government Programs

General Services Administration (GSA) Federal Supply Schedule (FSS) for Transportation and Logistics Services
Other Government-Wide Acquisition Contracts (GWACs) for logistics and delivery services
Agency-specific contracts for mail and courier services

Risk Flags

Potential for limited competition justification review
Reliance on a single large provider for critical logistics

Frequently Asked Questions

What is this federal contract paying for?

Government Accountability Office awarded $688,971.32 to FEDERAL EXPRESS CORPORATION. AWARD: IS IN ACCORDANCE WITH FAR 16.505 (B) (2) UNDER ACQUISITION GATE WAY - NEXT GENERATION DELIVERY SERVICES (NGDS) GOVERNMENT-WIDE ACQUISITION CONTRACT (GWAC). ALL INVOICES ARE TO BE E-MAILED, ON A WEEKLY BASES TO: FRANKSJ1@GAO.GOV

Who is the contractor on this award?

The obligated recipient is FEDERAL EXPRESS CORPORATION.

Which agency awarded this contract?

Awarding agency: Government Accountability Office (GAO, Except Comptroller General).

What is the total obligated amount?

The obligated amount is $688,971.32.

What is the period of performance?

Start: 2023-04-01. End: 2027-03-31.

What is the historical spending pattern of the Government Accountability Office (GAO) on courier and delivery services?

Analyzing GAO's historical spending on courier and delivery services requires access to detailed procurement databases. However, the award to Federal Express under a GWAC suggests a recurring need for such services. Typically, agencies like GAO utilize these services for the routine movement of documents, evidence, and other materials critical to their auditing and investigative functions. Spending can fluctuate based on the volume of ongoing investigations, audits, and the geographical distribution of their work. The use of GWACs indicates a trend towards leveraging pre-competed vehicles to streamline procurements for common services, implying a consistent, albeit potentially variable, budget allocation for these needs over time.

How does the pricing of this Federal Express contract compare to other similar federal contracts for delivery services?

Direct comparison of pricing requires access to detailed pricing data for similar contracts, which is not fully available here. However, the contract is a firm-fixed-price award under a GWAC (NGDS). GWACs are generally established through competitive processes designed to yield favorable pricing. Federal Express is a major carrier, and their inclusion on such a GWAC suggests their pricing was deemed competitive at the time the GWAC was awarded. To perform a precise benchmark, one would compare the rates (e.g., per package, per mile, per service level) against other orders placed under the same or similar GWACs, or against rates negotiated through other large-scale federal logistics contracts. The GAO's selection of Federal Express implies confidence in the value proposition offered.

What are the specific risks associated with this contract, and how are they mitigated?

Key risks include potential service disruptions (e.g., weather, labor issues affecting Federal Express), cost overruns if the scope expands beyond initial expectations (though mitigated by firm-fixed-price), and potential for underutilization if GAO's needs decrease. Mitigation strategies likely involve the contract's performance standards, service level agreements (SLAs) embedded within the GWAC, and GAO's ability to monitor delivery performance. The use of a reputable provider like Federal Express inherently reduces some operational risks. The 'Exclusion of Sources' aspect, while potentially efficient, carries a risk of perceived fairness or missed opportunities if not properly justified.

What is the track record of Federal Express Corporation in fulfilling federal government contracts for delivery services?

Federal Express Corporation has a long and extensive history of serving the U.S. federal government across various agencies. They are a primary provider of express delivery and logistics services, frequently utilized for time-sensitive and critical shipments. Their track record generally includes reliable performance, extensive network capabilities, and adherence to security protocols required for government materials. Past performance data, often available through federal procurement databases like SAM.gov or through agency-specific past performance reviews, would detail their success rates, any past disputes, and overall satisfaction levels. Their continued presence on GWACs like NGDS indicates a generally positive and consistent performance history with the government.

How does the competition level for this specific delivery order impact price discovery and value for the taxpayer?

This specific delivery order was placed under the NGDS GWAC. The NGDS GWAC itself underwent a full and open competition, involving four bidders. This means the underlying contract vehicle was competitively awarded. For individual task orders placed against a GWAC, the process can vary. While the data states 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' this implies that the initial competition for the GWAC was broad, but the specific mechanism for this order might have involved a limited number of pre-qualified vendors or a specific justification for excluding others. A highly competitive GWAC generally leads to better price discovery and value for taxpayers by ensuring a range of providers are available with pre-negotiated, competitive rates.

Industry Classification

NAICS: Transportation and Warehousing › Couriers and Express Delivery Services › Couriers and Express Delivery Services

Product/Service Code: TRANSPORT, TRAVEL, RELOCATION › TRANSPORTATION OF THINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 05GA0A23Q0014

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Fedex Corp

Address: 2003 CORPORATE PLZ, MEMPHIS, TN, 38132

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $888,971

Exercised Options: $688,971

Current Obligation: $688,971

Actual Outlays: $164,464

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HTC71123DC023

IDV Type: IDC

Timeline