DOJ's Bureau of Prisons Awards $3.6M Contract to UPS for Inmate Shipping in FY26

Contract Overview

Contract Amount: $3,629 ($3.6K)

Contractor: United Parcel Service CO.

Awarding Agency: Department of Justice

Start Date: 2025-12-01

End Date: 2026-09-30

Contract Duration: 303 days

Daily Burn Rate: $12/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: FPC BRYAN-UPS INMATE SUPPLIES SHIPPING FY26 F6

Place of Performance

Location: LOUISVILLE, JEFFERSON County, KENTUCKY, 40223

State: Kentucky Government Spending

Plain-Language Summary

Department of Justice obligated $3,629.33 to UNITED PARCEL SERVICE CO. for work described as: FPC BRYAN-UPS INMATE SUPPLIES SHIPPING FY26 F6 Key points: 1. UPS secures a significant contract for inmate supply shipping, highlighting its role in federal logistics. 2. The contract value of $3.6M for FY26 indicates substantial demand for reliable delivery services within the correctional system. 3. Competition was full and open, suggesting a competitive bidding process that likely drove favorable pricing. 4. The sector is couriers and express delivery services, a critical component of government operations.

Value Assessment

Rating: good

The contract's firm fixed price structure provides cost certainty. Benchmarking against similar federal contracts for logistics services would be beneficial to confirm optimal pricing.

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 robust process to ensure fair pricing and service quality.

Taxpayer Impact: The competitive nature of the award is expected to yield good value for taxpayers, ensuring efficient use of funds for essential correctional services.

Public Impact

Ensures timely delivery of essential supplies to federal inmates. Supports the operational continuity of the Federal Prison System. Leverages established private sector logistics infrastructure for government needs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for increased shipping costs if fuel prices rise significantly.
Dependence on a single provider for a critical service.

Positive Signals

Utilizes a well-established and experienced logistics provider.
Firm fixed price contract offers budget predictability.
Full and open competition likely resulted in competitive pricing.

Sector Analysis

The Federal Prison System's reliance on couriers and express delivery services is crucial for maintaining inmate welfare and operational efficiency. Spending in this sector is benchmarked against the overall federal logistics spend, with this contract representing a modest portion.

Small Business Impact

This contract was awarded to a large corporation (United Parcel Service Co.) and does not appear to include specific provisions or set-asides for small businesses.

Oversight & Accountability

The contract is managed by the Department of Justice's Federal Prison System. Oversight would focus on delivery performance, adherence to contract 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

Potential for service disruptions due to unforeseen events.
Reliance on a single large provider for a critical function.
Vulnerability to fluctuations in fuel and transportation costs.
Lack of explicit small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $3,629.33 to UNITED PARCEL SERVICE CO.. FPC BRYAN-UPS INMATE SUPPLIES SHIPPING FY26 F6

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 $3,629.33.

What is the period of performance?

Start: 2025-12-01. End: 2026-09-30.

What is the historical performance of UPS with the Bureau of Prisons for similar services?

Historical performance data for UPS with the Bureau of Prisons is crucial for assessing reliability and potential risks. Reviewing past delivery success rates, incident reports, and any previous contract disputes would provide valuable insights into their capability to meet the demands of this specific inmate supply shipping contract. This information helps validate the 'good' rating for value and informs risk assessment.

Are there alternative shipping providers that could offer comparable services at a lower cost or with better terms?

While the contract was awarded under full and open competition, continuous market analysis is prudent. Exploring other major logistics providers or specialized correctional service vendors could reveal opportunities for cost savings or service enhancements in future solicitations. This proactive approach ensures the government consistently obtains the best value and mitigates risks associated with relying on a single provider.

How does the per-package cost compare to industry benchmarks for similar types of shipments?

Benchmarking the per-package cost against industry standards for similar weight, distance, and delivery speed is essential for evaluating cost-effectiveness. If this contract's pricing significantly deviates from benchmarks, it warrants further investigation into the specific requirements or market conditions that might justify the difference. This analysis directly impacts the assessment of value for taxpayer money.

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: $3,629

Exercised Options: $3,629

Current Obligation: $3,629

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HTC71123DC025

IDV Type: IDC

Timeline