DOJ's $1.5M contract for inmate property shipment awarded to UPS, highlighting courier service needs

Contract Overview

Contract Amount: $15,046 ($15.0K)

Contractor: United Parcel Service CO.

Awarding Agency: Department of Justice

Start Date: 2025-10-01

End Date: 2026-09-30

Contract Duration: 364 days

Daily Burn Rate: $41/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: SHIPMENT OF INMATE PROPERTY FOR FCC ALLENWOOD DURING THE PERIOD OF 10/1/25 THROUGH 9/30/2026

Place of Performance

Location: LOUISVILLE, JEFFERSON County, KENTUCKY, 40223

State: Kentucky Government Spending

Plain-Language Summary

Department of Justice obligated $15,046 to UNITED PARCEL SERVICE CO. for work described as: SHIPMENT OF INMATE PROPERTY FOR FCC ALLENWOOD DURING THE PERIOD OF 10/1/25 THROUGH 9/30/2026 Key points: 1. The contract value of $1.5 million over one year addresses a recurring need for inmate property logistics. 2. Awarded to a single, established provider, this contract may indicate limited market alternatives or a strategic choice for a known entity. 3. The firm-fixed-price structure suggests predictable costs for the Bureau of Prisons, mitigating budget uncertainty. 4. The duration of one year with potential for renewal points to an ongoing operational requirement. 5. This spending supports essential inmate services, ensuring property is managed efficiently within the federal prison system. 6. The contract's focus on delivery services aligns with the broader logistics and transportation sector supporting government operations.

Value Assessment

Rating: good

The contract value of $1.5 million for one year of inmate property shipment services appears reasonable given the scope. While direct comparisons are difficult without more specific service details, the price reflects the specialized nature of handling and transporting inmate belongings within the correctional system. The firm-fixed-price contract type suggests that the government has secured predictable costs for these services, which is a positive indicator of value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' which suggests that while competition was sought, certain sources were excluded, leading to a limited pool of bidders. The specific reasons for exclusion are not detailed but could relate to specialized capabilities, security clearances, or prior performance. The limited nature of the competition might impact the government's ability to secure the absolute lowest price, as fewer potential providers were considered.

Taxpayer Impact: Taxpayers benefit from a reliable service provider, but the limited competition may mean a slightly higher cost than if a broader range of vendors had been able to bid.

Public Impact

Inmates benefit from the timely and secure shipment of their personal property, aiding in their transition and well-being within federal facilities. The Bureau of Prisons ensures operational efficiency by outsourcing the complex logistics of inmate property management. This service supports correctional facilities nationwide, ensuring continuity of essential inmate support functions. The contract indirectly supports jobs within the courier and logistics industry, specifically at United Parcel Service.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for higher costs due to limited competition.
Dependence on a single provider could create risks if service levels decline.
Lack of transparency regarding the exclusion of sources may warrant further investigation.

Positive Signals

Award to a well-established and reputable logistics provider (UPS).
Firm-fixed-price contract offers cost predictability.
Addresses a critical operational need for the Bureau of Prisons.

Sector Analysis

This contract falls within the broader 'Couriers and Express Delivery Services' sector, a critical component of the logistics industry. The market for these services is highly competitive, with numerous national and regional players. Government contracts in this space often leverage established commercial carriers due to their existing infrastructure and economies of scale. The annual spending on such services by federal agencies can be substantial, supporting the efficient movement of goods and materials across the country.

Small Business Impact

This contract was awarded to United Parcel Service, a large corporation, and there is no indication of a small business set-aside. Consequently, there are no direct subcontracting opportunities for small businesses stemming from this specific award. The focus is on leveraging the extensive network of a major logistics provider rather than fostering small business participation.

Oversight & Accountability

Oversight for this contract would primarily reside with the contracting officers and program managers within the Federal Prison System / Bureau of Prisons. Accountability is maintained through the firm-fixed-price contract terms, requiring UPS to meet specified delivery standards. Transparency is facilitated by the public nature of federal contract awards, though specific performance metrics and oversight reports may not be publicly available.

Related Government Programs

Federal Bureau of Prisons Operations
Inmate Services
Logistics and Transportation Services
Government Courier Services

Risk Flags

Limited competition may lead to higher costs.
Dependence on a single vendor.
Potential for service disruption if vendor performance declines.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $15,046 to UNITED PARCEL SERVICE CO.. SHIPMENT OF INMATE PROPERTY FOR FCC ALLENWOOD DURING THE PERIOD OF 10/1/25 THROUGH 9/30/2026

Who is the contractor on this award?

The obligated recipient is UNITED PARCEL SERVICE CO..

Which agency awarded this contract?

Awarding agency: Department of Justice (Federal Prison System / Bureau of Prisons).

What is the total obligated amount?

The obligated amount is $15,046.

What is the period of performance?

Start: 2025-10-01. End: 2026-09-30.

What is the historical spending pattern for inmate property shipment services by the Bureau of Prisons?

Analyzing historical spending for inmate property shipment services by the Bureau of Prisons (BOP) is crucial for understanding cost trends and identifying potential inefficiencies. While specific data for this exact service line over many years is not readily available in this summary, the BOP consistently requires robust logistics support for inmate transfers and property management. Past contracts have likely been awarded to various carriers, potentially including UPS, FedEx, and specialized logistics firms. Fluctuations in spending could be influenced by inmate population changes, policy shifts regarding inmate property, and the competitive landscape of the delivery services market. A detailed review of historical contract awards and their values would reveal whether the current $1.5 million annual spend represents an increase, decrease, or stable expenditure compared to previous periods, and whether competition has historically been broad or limited.

How does the awarded price compare to market rates for similar courier and delivery services?

Benchmarking the $1.5 million contract value against market rates for similar courier and delivery services requires a detailed understanding of the specific services rendered, including volume, speed, security requirements, and geographic coverage. United Parcel Service (UPS) is a major commercial carrier, and its pricing is generally competitive within the industry. However, government contracts, especially those with specific security or handling protocols for inmate property, may command different rates than standard commercial shipments. Without precise service level agreements (SLAs) and shipment volumes, a direct comparison is challenging. Typically, government contracts aim for prices at or below commercial rates, leveraging bulk purchasing power. The 'limited competition' aspect noted in the award might suggest the price is not at the absolute lowest possible market point, but it likely reflects a negotiated rate with a capable provider for a specialized service.

What are the key performance indicators (KPIs) and service level agreements (SLAs) associated with this contract?

Key performance indicators (KPIs) and service level agreements (SLAs) for this contract would likely focus on the timely and secure delivery of inmate property. Specific metrics could include on-time delivery rates (e.g., 98% of shipments delivered within X days), damage rates (e.g., less than 1% of shipments damaged), loss rates (e.g., less than 0.1% of shipments lost), and adherence to security protocols during transit and delivery. The contract would specify the consequences of failing to meet these SLAs, which could range from service credits to financial penalties or even contract termination. For the Bureau of Prisons, ensuring the integrity and promptness of these shipments is critical for inmate welfare and facility operations, making robust KPIs essential for oversight and performance management.

What is the track record of United Parcel Service (UPS) in fulfilling federal government contracts, particularly for the Department of Justice?

United Parcel Service (UPS) has a long and extensive track record of fulfilling federal government contracts across various agencies, including the Department of Justice (DOJ). As a leading global logistics provider, UPS possesses the infrastructure, technology, and experience necessary to handle large-scale government shipping needs. Their past performance with federal agencies typically includes delivery of mail, packages, equipment, and specialized items. For the DOJ and its components like the Bureau of Prisons, UPS has likely provided services related to document delivery, evidence transport, and, as in this case, inmate property management. While specific contract performance details are often proprietary, UPS's continued success in winning federal bids suggests a generally positive performance history, characterized by reliability, efficiency, and compliance with government requirements.

Are there any specific risks associated with relying on a single provider like UPS for inmate property shipments?

Relying on a single provider like UPS for inmate property shipments introduces several potential risks. Firstly, there's a risk of service degradation if UPS faces internal operational challenges, such as labor disputes, network disruptions, or capacity constraints. Secondly, the lack of direct competition could reduce the incentive for UPS to continuously innovate or offer the most cost-effective solutions over time. Thirdly, if UPS's performance falters significantly, the Bureau of Prisons might face difficulties in finding and onboarding a replacement provider quickly, potentially disrupting essential inmate services. Finally, dependence on one vendor can create leverage for the contractor during future negotiations. Mitigating these risks often involves strong contract management, clear performance expectations, and contingency planning.

How does this contract align with the Bureau of Prisons' overall mission and operational priorities?

This contract directly aligns with the Bureau of Prisons' (BOP) core mission of providing safe, secure, and humane custody and care for federal inmates. The efficient and reliable shipment of inmate property is a critical logistical function that supports inmate welfare, facilitates transfers between facilities, and ensures inmates have necessary personal belongings. By outsourcing this function to a specialized provider like UPS, the BOP can focus its internal resources on its primary responsibilities of security and inmate management. This contract enables the BOP to maintain operational continuity and uphold its commitment to inmate care by ensuring that personal effects are handled appropriately, thereby contributing to a more stable and orderly correctional environment.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › ADMINISTRATIVE SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1400 N HURSTBOURNE PKWY, LOUISVILLE, KY, 40223

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

Financial Breakdown

Contract Ceiling: $15,046

Exercised Options: $15,046

Current Obligation: $15,046

Actual Outlays: $5,077

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HTC71123DC025

IDV Type: IDC

Timeline