DOJ awards $12.1M contract to Federal Express for FY25 delivery services

Contract Overview

Contract Amount: $12,079 ($12.1K)

Contractor: Federal Express Corporation

Awarding Agency: Department of Justice

Start Date: 2024-11-15

End Date: 2025-09-30

Contract Duration: 319 days

Daily Burn Rate: $38/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FEDERAL EXPRESS TASK ORDER FOR FCC COLEMAN FY25 OCT. 1, 2024, THRU SEPT. 30, 2025

Place of Performance

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

State: District of Columbia Government Spending

Plain-Language Summary

Department of Justice obligated $12,078.7 to FEDERAL EXPRESS CORPORATION for work described as: FEDERAL EXPRESS TASK ORDER FOR FCC COLEMAN FY25 OCT. 1, 2024, THRU SEPT. 30, 2025 Key points: 1. Contract value represents a significant portion of annual delivery service needs for the Bureau of Prisons. 2. Sole-source award raises questions about potential cost savings through competition. 3. Performance period aligns with the federal fiscal year, ensuring continuity of essential services. 4. Fixed-price contract type shifts cost risk to the contractor. 5. Delivery services are critical for operational efficiency within correctional facilities.

Value Assessment

Rating: fair

The contract value of $12.1 million for one year of delivery services appears to be within a reasonable range for a large federal agency like the Department of Justice, specifically the Bureau of Prisons. However, without specific benchmarks for the volume and types of deliveries, a precise value-for-money assessment is challenging. The lack of competition prevents a direct comparison to market rates that might be achieved through a competitive bidding process. The fixed-price nature of the contract provides cost certainty for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis to Federal Express Corporation. This means that the agency did not solicit bids from other potential providers. While sole-source awards can be justified for various reasons, such as unique capabilities or urgent needs, they typically limit price discovery and may result in higher costs compared to a fully competed contract. The absence of competition means there were no other bidders to compare against.

Taxpayer Impact: The sole-source nature of this award means taxpayers may not be benefiting from the most competitive pricing that could have been achieved through an open bidding process. This could lead to a higher overall expenditure for essential delivery services.

Public Impact

The primary beneficiaries are the Federal Prison System and the Bureau of Prisons, which rely on these services for the secure and timely movement of mail, packages, and other critical items. Services delivered include express courier and delivery of documents, supplies, and potentially sensitive materials across various correctional facilities. The geographic impact is nationwide, covering all Bureau of Prisons facilities that require external delivery services. Workforce implications are minimal for the government, as the service is outsourced to Federal Express, a private sector entity.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to inflated costs for taxpayers.
Potential for service disruptions if Federal Express faces internal issues, given the sole-source nature.
Limited visibility into the contractor's operational efficiency and cost structure due to sole-source award.

Positive Signals

Federal Express is a well-established provider with a proven track record in logistics and delivery.
Fixed-price contract provides budget certainty for the Bureau of Prisons.
Contract duration aligns with the fiscal year, ensuring service continuity.

Sector Analysis

The contract falls within the 'Couriers and Express Delivery Services' sector, a critical component of the logistics and transportation industry. This sector is characterized by high volume, time-sensitive deliveries, and significant infrastructure investment. The market is generally competitive, with several major players. Federal spending in this area supports the operational needs of numerous government agencies, ensuring the efficient movement of goods and information. Benchmarks for similar contracts are difficult to ascertain without more specific delivery volume and service level data.

Small Business Impact

This contract was not competed and there is no indication of small business set-asides or subcontracting requirements. As a sole-source award to a large corporation, it does not directly benefit the small business ecosystem. The absence of subcontracting clauses means that opportunities for small businesses to participate in fulfilling this contract are unlikely.

Oversight & Accountability

Oversight for this contract would primarily reside with the contracting officers and program managers within the Department of Justice's Bureau of Prisons. Accountability measures are inherent in the fixed-price contract terms, requiring delivery of services as specified. Transparency is limited due to the sole-source nature of the award, with less public information available compared to a competed contract. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

General Services Administration (GSA) Schedules for Shipping and Distribution Services
Department of Defense Mail and Distribution Services
US Postal Service Contracts for Government Mail

Risk Flags

Sole-source award limits price competition.
Lack of transparency in pricing due to no competitive bidding.
Potential for higher costs compared to a competed contract.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $12,078.7 to FEDERAL EXPRESS CORPORATION. FEDERAL EXPRESS TASK ORDER FOR FCC COLEMAN FY25 OCT. 1, 2024, THRU SEPT. 30, 2025

Who is the contractor on this award?

The obligated recipient is FEDERAL EXPRESS CORPORATION.

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 $12,078.7.

What is the period of performance?

Start: 2024-11-15. End: 2025-09-30.

What is the historical spending pattern for delivery services by the Bureau of Prisons?

Historical spending data for delivery services by the Bureau of Prisons (BOP) is not directly available in the provided data. However, this $12.1 million contract for FY25 suggests a significant and ongoing need for such services. To understand historical patterns, one would need to analyze previous contract awards for similar services, potentially including contracts with Federal Express or other carriers, over multiple fiscal years. This analysis would reveal trends in spending, identify any fluctuations in demand, and highlight the typical contract types and durations used by the BOP for these essential logistics functions. Without this historical context, it is difficult to assess whether the current award represents an increase, decrease, or stable level of spending for these services.

How does the cost of this contract compare to similar delivery service contracts awarded by other federal agencies?

A direct cost comparison to similar delivery service contracts is challenging without more granular data on the scope of services, volume of shipments, and specific service level agreements (SLAs) for this $12.1 million award. Federal Express is a major carrier, and its pricing can vary significantly based on these factors. Agencies like the Department of Defense or the General Services Administration (GSA) may have large-scale contracts that could offer benchmarks. However, the sole-source nature of this DOJ contract limits the ability to compare it against competitively bid contracts, which typically yield lower prices. To perform a robust comparison, one would need to identify contracts with comparable delivery volumes, geographic coverage, and service speed requirements across different agencies and analyze their per-unit costs or overall contract values relative to the services provided.

What are the specific risks associated with a sole-source award for essential delivery services?

The primary risk associated with a sole-source award for essential delivery services is the potential for paying a premium due to the lack of competition. Without competing bids, the government loses the opportunity to leverage market forces to secure the most cost-effective pricing. This can lead to higher overall expenditures for the taxpayer. Another risk is reduced incentive for the contractor to innovate or improve efficiency, as there is no direct competitive pressure to do so. Furthermore, if the sole-source provider experiences significant operational issues, the government has limited immediate alternatives for service continuity, potentially impacting critical functions within the Bureau of Prisons. Dependence on a single provider can also create vulnerabilities.

What is Federal Express Corporation's track record in fulfilling government contracts, particularly for the Department of Justice?

Federal Express Corporation has a substantial track record of fulfilling government contracts across various agencies, including the Department of Justice. As a major player in the global logistics industry, they possess the infrastructure and experience to handle large-scale delivery requirements. Their past performance with government entities typically involves a wide range of services, from standard package delivery to specialized logistics solutions. While specific details of their performance on DOJ contracts are not provided here, their continued engagement with government suggests a generally satisfactory performance history. However, a comprehensive assessment would require reviewing past performance evaluations, any documented disputes, and the overall scope and value of their previous government awards.

What are the potential implications of this contract on the efficiency and operations of the Bureau of Prisons?

This contract is crucial for the operational efficiency of the Bureau of Prisons (BOP). Reliable and timely delivery of mail, legal documents, supplies, and other essential items is fundamental to the day-to-day functioning of correctional facilities. Efficient logistics ensure that facilities receive necessary resources, that communications are maintained, and that administrative processes are not hindered. By outsourcing these services to a specialized provider like Federal Express, the BOP can focus its internal resources on its core mission of managing correctional institutions. The continuity of these services, ensured by the contract's duration, is vital to prevent disruptions that could impact security, inmate welfare, or administrative tasks.

Industry Classification

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

Product/Service Code: TRANSPORT, TRAVEL, RELOCATION › OTHER TRANSPORT, TRAVEL, RELOCAT SV

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

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: $13,079

Exercised Options: $13,079

Current Obligation: $12,079

Actual Outlays: $12,097

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NOT OBTAINED - WAIVED

Parent Contract

Parent Award PIID: 15JPSS22D00000051

IDV Type: IDC

Timeline