DOJ's $5.5M UPS Shipping Contract for Inmate Property Awarded to United Parcel Service Co
Contract Overview
Contract Amount: $5,500 ($5.5K)
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: $15/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: FY26 F6 UPS SHIPPING SERVICES- INMATE PROPERTY CONTRACT NUMBER: HTC71123DC025
Place of Performance
Location: LOUISVILLE, JEFFERSON County, KENTUCKY, 40223
State: Kentucky Government Spending
Plain-Language Summary
Department of Justice obligated $5,500 to UNITED PARCEL SERVICE CO. for work described as: FY26 F6 UPS SHIPPING SERVICES- INMATE PROPERTY CONTRACT NUMBER: HTC71123DC025 Key points: 1. The contract is for FY26 UPS shipping services for inmate property. 2. United Parcel Service Co. is the sole awardee. 3. The contract is a Firm Fixed Price type. 4. The contract duration is 364 days. 5. The contract is being awarded under full and open competition after exclusion of sources.
Value Assessment
Rating: good
The contract value of $5.5 million for a one-year shipping service appears reasonable given the scope of supporting the Federal Prison System. Benchmarking against similar large-scale logistics contracts would provide further validation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition after exclusion of sources, indicating a competitive process was utilized. This method aims to ensure fair pricing and access for eligible vendors.
Taxpayer Impact: The competitive award process is expected to yield fair market pricing, minimizing unnecessary taxpayer expenditure for essential shipping services.
Public Impact
Ensures timely delivery of essential inmate property. Supports the operational needs of the Bureau of Prisons. Maintains continuity of services for correctional facilities nationwide.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for price increases in future contract periods.
- Dependence on a single carrier for critical logistics.
Positive Signals
- Competitive award process.
- Firm Fixed Price contract type.
Sector Analysis
This contract falls within the Couriers and Express Delivery Services sector, a critical component of government logistics. Spending in this sector is generally stable, driven by the need for reliable transportation of goods and documents.
Small Business Impact
The data does not indicate any specific provisions or set-asides for small businesses in this contract award. Further analysis would be needed to determine if small businesses had an opportunity to participate.
Oversight & Accountability
The contract is managed by the Department of Justice, Federal Prison System / Bureau of Prisons. Oversight would involve monitoring delivery performance, adherence to terms, and financial accountability.
Related Government Programs
- Couriers and Express Delivery Services
- Department of Justice Contracting
- Federal Prison System / Bureau of Prisons Programs
Risk Flags
- Sole awardee may limit future competition.
- Potential for price escalation in subsequent periods.
- Dependence on a single carrier's operational stability.
- Lack of explicit small business participation noted.
Tags
couriers-and-express-delivery-services, department-of-justice, ky, delivery-order, under-100k
Frequently Asked Questions
What is this federal contract paying for?
Department of Justice awarded $5,500 to UNITED PARCEL SERVICE CO.. FY26 F6 UPS SHIPPING SERVICES- INMATE PROPERTY CONTRACT NUMBER: HTC71123DC025
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 $5,500.
What is the period of performance?
Start: 2025-10-01. End: 2026-09-30.
What is the historical performance of United Parcel Service Co. with the Bureau of Prisons for similar services?
Historical performance data for United Parcel Service Co. with the Bureau of Prisons is crucial for assessing reliability and value. Past contract performance, including on-time delivery rates, damage claims, and customer satisfaction, provides a strong indicator of future success. Understanding this history can help validate the current award and identify any potential risks or areas for improved service.
How does the per-unit cost of shipping under this contract compare to industry benchmarks for similar services?
Benchmarking the per-unit shipping cost against industry standards for similar services is essential for evaluating cost-effectiveness. This comparison helps determine if the government is receiving competitive pricing. Factors like package volume, weight, destination, and service level significantly influence per-unit costs, requiring a nuanced analysis to ensure taxpayer value.
What are the contingency plans if United Parcel Service Co. experiences service disruptions or fails to meet contract requirements?
Contingency planning is vital for ensuring continuity of essential inmate property delivery. The Bureau of Prisons should have established protocols for addressing potential service disruptions from the awarded carrier. This could include identifying alternative carriers, defining performance penalties, and outlining procedures for escalating issues to ensure minimal impact on operations and inmate welfare.
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: $5,500
Exercised Options: $5,500
Current Obligation: $5,500
Actual Outlays: $1,879
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HTC71123DC025
IDV Type: IDC
Timeline
Start Date: 2025-10-01
Current End Date: 2026-09-30
Potential End Date: 2026-09-30 00:00:00
Last Modified: 2026-04-10
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