DOJ's Bureau of Prisons Awards $9M Contract to UPS for Delivery Services

Contract Overview

Contract Amount: $9,000 ($9.0K)

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: $25/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: UNITED POSTAL SERVICE - FY26 SERVICES TO BE SUPPLIED IN ACCORDANCE WITH TERMS AND CONDITIONS OF CONTRACT HTC71123DC025.

Place of Performance

Location: LOUISVILLE, JEFFERSON County, KENTUCKY, 40223

State: Kentucky Government Spending

Plain-Language Summary

Department of Justice obligated $9,000 to UNITED PARCEL SERVICE CO. for work described as: UNITED POSTAL SERVICE - FY26 SERVICES TO BE SUPPLIED IN ACCORDANCE WITH TERMS AND CONDITIONS OF CONTRACT HTC71123DC025. Key points: 1. Contract value is $9 million over one year. 2. UPS is the sole awardee, indicating potential lack of competition. 3. Risk of higher costs due to limited competition. 4. Spending falls within the 'Couriers and Express Delivery Services' sector.

Value Assessment

Rating: fair

The contract is a firm-fixed-price delivery order. Without knowing the specific services and volume, it's difficult to assess if the $9 million price is competitive. However, the lack of competition in the award process raises concerns about potential overpricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' which suggests some form of competition but with limitations. This method can restrict the pool of potential bidders and may not yield the best possible price discovery.

Taxpayer Impact: The $9 million expenditure represents taxpayer funds. The limited competition raises questions about whether the most cost-effective solution was secured for the government.

Public Impact

Ensures essential delivery services for the Federal Prison System. Supports the operational needs of the Bureau of Prisons. Impacts the logistics and supply chain for correctional facilities.

Waste & Efficiency Indicators

Waste Risk Score: 25 / 10

Warning Flags

Limited competition may lead to higher costs.
Lack of transparency in the 'exclusion of sources' process.
Reliance on a single provider for critical services.

Positive Signals

Contract awarded to a well-established provider (UPS).
Firm-fixed-price contract provides cost certainty.
Services are essential for agency operations.

Sector Analysis

The 'Couriers and Express Delivery Services' sector is vital for government operations, facilitating the movement of documents, supplies, and equipment. Benchmarks for this sector vary widely based on service type and volume, but $9 million for a year of service suggests a significant operational requirement.

Small Business Impact

The data indicates this contract was not awarded to small businesses, as 'sb' is false. The limited competition also suggests that small businesses may not have been considered or able to participate effectively in this procurement.

Oversight & Accountability

The award method, 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' warrants further scrutiny to ensure proper justification for excluding other potential bidders and to confirm that the chosen method still achieved fair and reasonable pricing.

Related Government Programs

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

Risk Flags

Potential for inflated costs due to limited competition.
Lack of transparency regarding source exclusion.
No indication of small business participation.
Single awardee for a significant contract value.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $9,000 to UNITED PARCEL SERVICE CO.. UNITED POSTAL SERVICE - FY26 SERVICES TO BE SUPPLIED IN ACCORDANCE WITH TERMS AND CONDITIONS OF CONTRACT 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 $9,000.

What is the period of performance?

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

What specific services are included in this $9 million contract, and how does the pricing compare to similar government or commercial contracts for these services?

The provided data does not detail the specific services covered by the contract, only the general category of 'Couriers and Express Delivery Services.' To assess value, a detailed breakdown of services (e.g., express mail, package delivery, specialized transport) and their associated volumes is needed. Benchmarking against similar contracts, considering service levels, geographic coverage, and contract type, would be crucial for a comprehensive value assessment.

What was the justification for excluding other sources in this 'full and open competition after exclusion of sources' award, and what was the potential impact on price?

The justification for excluding other sources is not provided. This procurement method, while allowing for competition, inherently limits the bidder pool. If the exclusion was not well-justified or if viable competitors were unfairly barred, it could have led to a less competitive environment, potentially resulting in higher prices than could have been achieved through truly open competition.

How effectively does this contract support the operational needs of the Federal Prison System, and are there alternative solutions that could offer better value or service?

The contract is essential for the operational continuity of the Bureau of Prisons, ensuring timely delivery of necessary items. However, the limited competition raises questions about whether alternative solutions, perhaps involving different providers, consolidated services, or even in-house capabilities, might offer superior value or enhanced service levels. A review of performance metrics and market alternatives would be beneficial.

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: $9,000

Exercised Options: $9,000

Current Obligation: $9,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HTC71123DC025

IDV Type: IDC

Timeline