DOJ Awards UPS $5.1M for Shipping Services in FY26 Qtr 2

Contract Overview

Contract Amount: $5,124 ($5.1K)

Contractor: United Parcel Service CO.

Awarding Agency: Department of Justice

Start Date: 2026-01-01

End Date: 2026-04-06

Contract Duration: 95 days

Daily Burn Rate: $54/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: UPS SHIPPING FY26 QTR 2 IAW T&C: HTC71123DC025

Place of Performance

Location: LOUISVILLE, JEFFERSON County, KENTUCKY, 40223

State: Kentucky Government Spending

Plain-Language Summary

Department of Justice obligated $5,123.77 to UNITED PARCEL SERVICE CO. for work described as: UPS SHIPPING FY26 QTR 2 IAW T&C: HTC71123DC025 Key points: 1. Significant contract value for essential courier services. 2. UPS is a major player in the logistics sector. 3. Potential risk associated with reliance on a single provider for critical delivery needs. 4. Spending aligns with the 'Couriers and Express Delivery Services' sector.

Value Assessment

Rating: good

The contract value of $5.1M for a single quarter appears reasonable given the scale of federal agency needs. Benchmarking against similar large-scale shipping 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, indicating a competitive bidding process. This method is expected to yield fair market prices.

Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for necessary shipping services.

Public Impact

Ensures timely delivery of mail, packages, and critical documents for the Department of Justice. Supports the operational needs of the Federal Prison System and Bureau of Prisons. Maintains continuity of essential government functions through reliable logistics.

Waste & Efficiency Indicators

Waste Risk Score: 54 / 10

Warning Flags

Dependence on a single vendor for a critical service.
Potential for price increases in future contract renewals.

Positive Signals

Awarded through full and open competition.
Firm fixed price contract provides cost certainty.

Sector Analysis

This contract falls within the Couriers and Express Delivery Services sector, which is vital for government operations. Federal spending in this area is consistent and necessary for agency functions.

Small Business Impact

The data indicates this contract was awarded to a large corporation (UPS) and does not show any specific set-aside for small businesses.

Oversight & Accountability

The contract was awarded under full and open competition, suggesting a degree of oversight in the procurement process. Further review of the specific T&Cs would reveal detailed accountability measures.

Related Government Programs

Couriers and Express Delivery Services
Department of Justice Contracting
Federal Prison System / Bureau of Prisons Programs

Risk Flags

Vendor Lock-in
Service Disruption Risk
Price Volatility
Performance Monitoring Gaps

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $5,123.77 to UNITED PARCEL SERVICE CO.. UPS SHIPPING FY26 QTR 2 IAW T&C: 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 $5,123.77.

What is the period of performance?

Start: 2026-01-01. End: 2026-04-06.

What is the historical cost trend for UPS shipping services utilized by the Department of Justice?

Analyzing historical spending data for UPS shipping services by the DOJ is crucial to identify any significant price escalations or cost efficiencies over time. Understanding past trends can inform negotiations for future contracts and ensure continued value for taxpayer money.

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

Understanding the KPIs and SLAs is essential to assess the effectiveness of the service. These metrics would define delivery times, package handling standards, and tracking capabilities, directly impacting the operational efficiency of the DOJ and its agencies.

Are there alternative shipping providers that could offer comparable services at a lower cost?

Evaluating alternative providers is key to ensuring competitive pricing and service quality. A thorough market analysis would identify other courier services capable of meeting the DOJ's specific needs, potentially leading to cost savings or improved service offerings.

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: $5,124

Exercised Options: $5,124

Current Obligation: $5,124

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HTC71123DC025

IDV Type: IDC

Timeline