DOJ's $371K contract for inmate package delivery to UPS highlights courier service costs

Contract Overview

Contract Amount: $37,186 ($37.2K)

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: $102/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: SHIPMENT SERVICES OF INMATE PACKAGES FOR THE FEDERAL TRANSFER CENTER LOCATED IN OKLAHOMA CITY, OKLAHOMA.

Place of Performance

Location: LOUISVILLE, JEFFERSON County, KENTUCKY, 40223

State: Kentucky Government Spending

Plain-Language Summary

Department of Justice obligated $37,186 to UNITED PARCEL SERVICE CO. for work described as: SHIPMENT SERVICES OF INMATE PACKAGES FOR THE FEDERAL TRANSFER CENTER LOCATED IN OKLAHOMA CITY, OKLAHOMA. Key points: 1. The contract value of $371,860 for 364 days of service represents a significant expenditure for inmate package delivery. 2. Competition dynamics for this specific service need to be examined to understand if pricing reflects market value. 3. Performance metrics and on-time delivery rates will be crucial indicators of service quality and value for money. 4. The contract's duration of one year (with potential for extensions) allows for ongoing assessment of contractor performance. 5. This contract falls within the broader logistics and courier services sector, which is highly competitive. 6. The fixed-price contract type aims to control costs, but the actual value depends on service delivery efficiency.

Value Assessment

Rating: fair

Benchmarking the $371,860 contract value against similar inmate package delivery services across federal facilities is challenging due to the niche nature of the requirement. However, the per-day cost of approximately $1,021.59 for delivery services needs to be assessed against standard commercial rates for express package delivery, considering the specialized handling and security protocols potentially involved. Without more granular data on the volume and weight of packages, a precise value-for-money assessment is difficult, but the price appears within a reasonable range for specialized logistics.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating that while competition was sought, certain sources may have been excluded for specific reasons. The number of bidders is not specified, but this procurement method suggests a limited pool of qualified offerors. This could potentially impact price discovery, as a smaller competitive set might lead to less aggressive pricing compared to unrestricted full and open competition.

Taxpayer Impact: Taxpayers may have received a less competitive price due to the limited number of potential bidders. The specific rationale for excluding certain sources needs to be transparent to ensure fairness and optimal use of funds.

Public Impact

Inmates at the Federal Transfer Center in Oklahoma City will benefit from the reliable delivery of personal packages. This service ensures that inmates can maintain connections with family and friends through the delivery of essential items and personal correspondence. The contract supports the operational needs of the Federal Prison System by facilitating inmate welfare programs. Geographically, the impact is concentrated on the Federal Transfer Center in Oklahoma City, ensuring its smooth operation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for higher costs due to limited competition.
Risk of service disruptions if the sole provider faces operational issues.
Ensuring compliance with inmate package regulations and security protocols.

Positive Signals

Clear contract duration allows for performance monitoring.
Fixed-price contract helps in budget predictability.
Award to a well-established provider like UPS suggests a degree of reliability.

Sector Analysis

The contract falls within the broader 'Couriers and Express Delivery Services' sector, a mature and competitive industry dominated by large players like UPS, FedEx, and DHL. This sector is characterized by significant infrastructure investment, technological advancements in tracking and logistics, and a constant drive for efficiency. Federal spending in this area typically supports agency mailrooms, expedited shipping needs, and specialized delivery services, often leveraging existing commercial infrastructure. Benchmarking against general express delivery rates is possible, but specialized government contracts may include additional security or handling requirements.

Small Business Impact

The contract does not indicate any small business set-aside provisions (ss: false, sb: false). This suggests that the primary competition was not specifically targeted towards small businesses. Therefore, the direct impact on the small business ecosystem is likely minimal, and there are no explicit subcontracting requirements mentioned that would necessitate small business participation.

Oversight & Accountability

Oversight for this contract would typically fall under the Federal Prison System's contracting officers and program managers within the Department of Justice. Accountability measures are embedded in the contract terms, including performance standards and delivery schedules. Transparency is generally maintained through federal procurement databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract is suspected.

Related Government Programs

Federal Inmate Communications Services
Bureau of Prisons Logistics Contracts
Department of Justice Mail and Delivery Services
Corrections Facility Support Services

Risk Flags

Limited competition may impact pricing.
Lack of detailed performance metrics in summary data.
Potential for higher costs compared to unrestricted competition.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $37,186 to UNITED PARCEL SERVICE CO.. SHIPMENT SERVICES OF INMATE PACKAGES FOR THE FEDERAL TRANSFER CENTER LOCATED IN OKLAHOMA CITY, OKLAHOMA.

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 $37,186.

What is the period of performance?

Start: 2025-10-01. End: 2026-09-30.

What is the historical spending pattern for inmate package delivery services at the Federal Transfer Center in Oklahoma City?

Historical spending data for inmate package delivery services at the Federal Transfer Center in Oklahoma City is not readily available in the provided data snippet. To assess historical patterns, one would need to query federal procurement databases (like FPDS or USASpending.gov) for previous contracts awarded for this specific service at this location. Analyzing past contract values, durations, and awardees would reveal trends in pricing, provider stability, and potential increases or decreases in service demand. Understanding these historical trends is crucial for evaluating the current contract's value and identifying any significant deviations that might warrant further investigation into cost efficiency or market changes.

How does the pricing of this UPS contract compare to commercial rates for similar express delivery services?

Comparing the pricing of this UPS contract to commercial rates requires a detailed breakdown of the services rendered, including package volume, weight, delivery speed, and any specialized handling or security requirements unique to inmate packages. The contract's total value of $371,860 over 364 days equates to approximately $1,021.59 per day. While UPS offers various commercial services, direct price-per-package comparisons are difficult without knowing the exact number and type of packages handled daily. However, if this daily rate were applied to a high volume of standard express packages, it might appear higher than typical commercial rates. The 'limited competition' aspect and potential specialized requirements could justify a premium, but a thorough benchmark against comparable government contracts or detailed commercial rate sheets for similar service levels would be necessary for a definitive assessment.

What are the specific performance metrics and service level agreements (SLAs) included in this contract?

The provided data does not detail the specific performance metrics or Service Level Agreements (SLAs) for this contract. Typically, contracts for delivery services would include metrics such as on-time delivery rates, package condition upon arrival, accuracy of delivery, and response times for any issues. These SLAs are crucial for ensuring the government receives the value it pays for and for holding the contractor accountable. Without these details, it is difficult to assess the contractor's performance beyond the basic fulfillment of the delivery requirement. Further review of the contract document itself would be necessary to ascertain the precise performance standards and associated remedies for non-compliance.

What was the justification for excluding other sources in the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' award type?

The justification for excluding other sources in a 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' award type typically stems from specific requirements that only a limited number of contractors can meet, or from prior performance issues with other potential providers. For inmate package delivery, exclusions might be based on stringent security clearances required for personnel handling sensitive inmate information or packages, specialized logistical capabilities for secure facilities, or a history of reliability and compliance with correctional facility protocols. The Federal Prison System would have documented the rationale, possibly citing unique security needs, specialized equipment, or the need for a provider with established relationships and vetting processes within the correctional environment. This justification is critical for ensuring the exclusion was fair and necessary for the government's mission.

What is the expected volume and type of packages to be shipped under this contract?

The provided data does not specify the expected volume or type of packages to be shipped under this contract. This information is critical for a comprehensive value-for-money analysis. Inmate package delivery can range from small personal items and correspondence to larger care packages, each with different weight, size, and handling requirements. Knowing the volume and type would allow for a more accurate per-unit cost comparison against commercial rates and help assess the overall efficiency of the $371,860 contract value. Without this data, the assessment remains at a higher, less granular level, focusing on the overall contract cost rather than the cost-effectiveness of individual shipments.

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: $37,186

Exercised Options: $37,186

Current Obligation: $37,186

Actual Outlays: $13,124

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HTC71123DC025

IDV Type: IDC

Timeline