DOJ's Bureau of Prisons awards $20.3M contract to UPS for inmate property transfer services

Contract Overview

Contract Amount: $20,338 ($20.3K)

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: $56/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: INMATE PROPERTY TRANSFER UPS FY26

Place of Performance

Location: ATLANTA, FULTON County, GEORGIA, 30328

State: Georgia Government Spending

Plain-Language Summary

Department of Justice obligated $20,338.07 to UNITED PARCEL SERVICE CO. for work described as: INMATE PROPERTY TRANSFER UPS FY26 Key points: 1. The contract, valued at $20.3 million, is for inmate property transfer services. 2. UPS is the sole awardee, indicating a potential lack of broader competition. 3. The firm fixed-price contract type helps mitigate cost overrun risks. 4. This falls under the 'Couriers and Express Delivery Services' sector.

Value Assessment

Rating: fair

The contract value of $20.3M for a 364-day period seems reasonable for national-level delivery services. Benchmarking against similar government contracts for logistics and courier services would provide a clearer picture of value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' suggesting some competition but with specific limitations. This method might not yield the most competitive pricing compared to unrestricted full and open competition.

Taxpayer Impact: Taxpayer funds are being used for essential inmate property transfer services. The pricing appears fair, but the limited competition could mean slightly higher costs than potentially achievable.

Public Impact

Ensures timely and secure transfer of inmate property, crucial for correctional facility operations. Supports the logistical needs of the Federal Prison System, impacting inmate welfare and facility management. Leverages established private sector delivery infrastructure for government functions.

Waste & Efficiency Indicators

Waste Risk Score: 56 / 10

Warning Flags

Limited competition may not guarantee the best price.
Reliance on a single provider for critical logistics.
Potential for price increases in future contract renewals.

Positive Signals

Utilizes a well-established and experienced service provider.
Firm fixed-price contract provides cost certainty.
Clear service period with defined start and end dates.

Sector Analysis

This contract falls within the 'Couriers and Express Delivery Services' sector, a mature market with established players. Government spending in this area typically focuses on reliability, speed, and cost-effectiveness for logistics needs.

Small Business Impact

The data indicates this contract was awarded to United Parcel Service Co., a large corporation. There is no explicit mention of small business participation or subcontracting goals in the provided data.

Oversight & Accountability

The contract is managed by the Department of Justice's Federal Prison System. Oversight would involve monitoring delivery performance, adherence to contract terms, and financial accountability to ensure taxpayer funds are used effectively.

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 increases
Reliance on a single vendor
Lack of small business participation noted

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $20,338.07 to UNITED PARCEL SERVICE CO.. INMATE PROPERTY TRANSFER UPS FY26

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 $20,338.07.

What is the period of performance?

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

What specific criteria led to the exclusion of other sources, and how was the pricing determined to be fair under these conditions?

The exclusion of sources suggests specific requirements or capabilities were sought that only UPS could meet, or perhaps a previous performance history influenced the decision. Pricing fairness would typically be assessed against market rates for similar services, historical contract data, and the specific service level agreements. Without detailed justification for source exclusion, it's difficult to definitively assess if the best possible price was achieved.

What are the potential risks associated with relying on a single provider for inmate property transfers, especially in terms of service disruptions or price escalations?

Relying on a single provider like UPS creates a risk of service disruption if UPS faces operational issues (e.g., labor strikes, natural disasters, network failures). This could impact inmate transfers and facility operations. Price escalation risk exists during renewal periods, as the incumbent provider may have leverage. Contingency plans and performance monitoring are crucial to mitigate these risks.

How does the efficiency and cost-effectiveness of this contract compare to alternative methods of inmate property transfer, such as government-operated logistics?

Utilizing a private sector provider like UPS leverages their established infrastructure and economies of scale, potentially offering greater efficiency and cost-effectiveness than a government-run system, especially for nationwide operations. However, the 'limited competition' aspect raises questions about whether the most competitive price was secured. A full cost-benefit analysis comparing this contract to government-operated logistics would be needed for a definitive comparison.

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: 3

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: $47,143

Exercised Options: $47,143

Current Obligation: $20,338

Actual Outlays: $5,251

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HTC71117DC003

IDV Type: IDC

Timeline