DOJ Extends UPS Inmate Shipment Contract by 4 Months for $4M, Ensuring Service Continuity

Contract Overview

Contract Amount: $4,000 ($4.0K)

Contractor: United Parcel Service CO.

Awarding Agency: Department of Justice

Start Date: 2025-12-31

End Date: 2026-09-30

Contract Duration: 273 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: UPS INMATE SHIPMENTS FY 26 EXTEND PERIOD OF PERFORMANCE FROM OCTOBER 1, 2025, TO JANUARY 30, 2026. CONTINUING RESOLUTION.

Place of Performance

Location: ANTHONY, EL PASO County, TEXAS, 79821

State: Texas Government Spending

Plain-Language Summary

Department of Justice obligated $4,000 to UNITED PARCEL SERVICE CO. for work described as: UPS INMATE SHIPMENTS FY 26 EXTEND PERIOD OF PERFORMANCE FROM OCTOBER 1, 2025, TO JANUARY 30, 2026. CONTINUING RESOLUTION. Key points: 1. Contract extension ensures continued delivery services for inmates. 2. UPS is the sole provider for this specific delivery need. 3. Risk of service disruption is mitigated by the extension. 4. Logistics and delivery services sector.

Value Assessment

Rating: good

The contract value of $4 million for a 4-month extension appears reasonable given the specialized nature of inmate shipments and the established relationship with UPS. Benchmarking against similar government delivery contracts would provide further validation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The competition method is 'Full and Open Competition After Exclusion of Sources,' indicating a specific justification for limiting the pool. This approach may impact price discovery, potentially leading to higher costs than a truly open competition.

Taxpayer Impact: Taxpayers are impacted by the $4 million expenditure, which funds essential inmate services. The cost-effectiveness hinges on the necessity of this specific provider and the efficiency of the service.

Public Impact

Ensures timely delivery of essential items to incarcerated individuals. Maintains operational continuity for the Bureau of Prisons' inmate support functions. Supports the rehabilitation and well-being of inmates through reliable package delivery.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may lead to suboptimal pricing.
Dependence on a single provider for a critical service.
Potential for scope creep or unaddressed needs in future contracts.

Positive Signals

Ensures service continuity during a period of uncertainty.
Leverages an established and reliable delivery partner.
Clear contract duration and defined scope for the extension.

Sector Analysis

This contract falls within the broader logistics and delivery services sector, which is crucial for government operations. Benchmarks for similar government courier services would be useful for comparative analysis.

Small Business Impact

This contract does not appear to involve small businesses, as it is awarded to UPS, a large corporation. Further analysis would be needed to determine if any subcontracting opportunities exist for small businesses within this delivery network.

Oversight & Accountability

The Department of Justice, specifically the Bureau of Prisons, is responsible for overseeing this contract. Accountability is maintained through contract performance monitoring and adherence to delivery schedules and terms.

Related Government Programs

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

Risk Flags

Limited competition.
Potential for price inflation due to limited competition.
Reliance on a single vendor.
Contract duration is relatively short, potentially leading to frequent re-procurement efforts.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $4,000 to UNITED PARCEL SERVICE CO.. UPS INMATE SHIPMENTS FY 26 EXTEND PERIOD OF PERFORMANCE FROM OCTOBER 1, 2025, TO JANUARY 30, 2026. CONTINUING RESOLUTION.

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 $4,000.

What is the period of performance?

Start: 2025-12-31. End: 2026-09-30.

What is the justification for excluding other sources in the 'Full and Open Competition After Exclusion of Sources' method for this contract?

The justification for excluding other sources typically relates to specific requirements such as security protocols for inmate deliveries, established infrastructure, or unique logistical capabilities that only the incumbent provider, UPS, can meet. This ensures the integrity and safety of the delivery process within correctional facilities.

How does the firm fixed price structure mitigate risks associated with fluctuating delivery volumes or fuel costs for inmate shipments?

A firm fixed price contract generally shifts the risk of cost overruns to the contractor (UPS). While it provides budget certainty for the government, it could lead to higher initial pricing to account for the contractor's risk. Fluctuations in volume or fuel costs are absorbed by UPS, but they may factor these potential variations into their bid.

What performance metrics are in place to ensure the effectiveness and reliability of UPS's delivery services to inmates under this extension?

Effectiveness is typically measured through on-time delivery rates, package condition upon arrival, and adherence to specific delivery windows or security procedures mandated by the Bureau of Prisons. Performance metrics are crucial for ensuring the contract meets its objectives and that taxpayer funds are used efficiently.

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: $4,000

Exercised Options: $4,000

Current Obligation: $4,000

Actual Outlays: $994

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HTC71123DC025

IDV Type: IDC

Timeline