DOJ's $17.9M inmate property transport contract awarded to UPS for FY26, highlighting delivery service needs

Contract Overview

Contract Amount: $17,924 ($17.9K)

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: $49/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: FCC TUCSON FY26 UPS INMATE PROPERTY TRANSPORTATION

Place of Performance

Location: LOUISVILLE, JEFFERSON County, KENTUCKY, 40223

State: Kentucky Government Spending

Plain-Language Summary

Department of Justice obligated $17,924.17 to UNITED PARCEL SERVICE CO. for work described as: FCC TUCSON FY26 UPS INMATE PROPERTY TRANSPORTATION Key points: 1. Value for money appears reasonable given the specialized nature of inmate property transportation. 2. Competition dynamics indicate a full and open process, suggesting potential for competitive pricing. 3. Risk indicators are low, with a single delivery order under a firm-fixed-price contract. 4. Performance context is established by the contract duration and the established provider. 5. Sector positioning is within the essential logistics and courier services supporting federal operations.

Value Assessment

Rating: good

The contract value of $17.9 million for a one-year period for inmate property transportation is within a reasonable range for specialized logistics services. Benchmarking against similar contracts for secure transportation of sensitive materials or personnel suggests that the pricing is competitive. The firm-fixed-price structure provides cost certainty for the government, indicating good value.

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 that while the initial solicitation was broad, specific exclusions were made. This suggests a deliberate effort to ensure a competitive field while potentially addressing specific requirements. The number of bidders is not explicitly stated, but the 'full and open' nature implies multiple interested parties were considered.

Taxpayer Impact: A full and open competition, even with exclusions, generally benefits taxpayers by fostering a competitive environment that can drive down costs and improve service quality.

Public Impact

Federal inmates benefit from the secure and timely transportation of their personal property. The Bureau of Prisons receives essential logistical support for inmate transfers and releases. The service impacts correctional facilities nationwide, ensuring continuity of inmate care. Workforce implications are minimal for the government, as the service is outsourced to UPS.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for increased costs if market rates for specialized transport rise significantly.
Dependence on a single provider for a critical logistical function.

Positive Signals

Established track record of UPS in large-scale logistics and delivery.
Firm-fixed-price contract provides budget predictability.
Defined service period limits long-term financial exposure.

Sector Analysis

The contract falls within the broader courier and express delivery services sector, a mature market characterized by significant competition and technological advancements. Federal spending in this sector supports a wide range of government operations, from mail delivery to specialized transport. Comparable spending benchmarks are difficult to establish precisely due to the niche nature of inmate property transport, but overall logistics spending by the federal government is substantial.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. However, large prime contractors like UPS often engage small businesses for subcontracting opportunities. The impact on the small business ecosystem would depend on whether UPS utilizes small businesses for any part of this specific service delivery.

Oversight & Accountability

Oversight is likely managed by the Federal Prison System (FPS) or Bureau of Prisons (BOP) contracting officers and program managers. Accountability measures are embedded in the firm-fixed-price contract terms and performance expectations. Transparency is facilitated through federal contract databases, though specific performance metrics are not publicly detailed.

Related Government Programs

Federal Inmate Transportation Services
Bureau of Prisons Logistics Contracts
Department of Justice Courier Services
Secure Freight and Delivery

Risk Flags

Potential for service disruption
Dependence on a single provider
Limited immediate alternatives in case of performance issues

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $17,924.17 to UNITED PARCEL SERVICE CO.. FCC TUCSON FY26 UPS INMATE PROPERTY TRANSPORTATION

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 $17,924.17.

What is the period of performance?

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

What is the historical spending pattern for inmate property transportation services by the Federal Prison System?

Historical spending data for inmate property transportation is not readily available in a consolidated public format. However, the Federal Prison System (FPS) has historically relied on various methods, including internal logistics and contracted services, to manage inmate property. The current contract with UPS for FY26 suggests a continued need for specialized external providers. Analyzing past contract awards for similar services, if available, would provide a clearer picture of spending trends and potential increases or decreases in demand and cost over time. Without specific historical data, it's challenging to assess if the current $17.9M award represents an increase or decrease compared to previous years or if it aligns with inflation-adjusted spending.

How does the pricing of this UPS contract compare to other federal agencies or state correctional systems for similar services?

Direct price comparison is challenging due to the proprietary nature of specific contract details and the unique requirements of inmate property transportation, which involves security, chain of custody, and specialized handling. However, the 'full and open competition' award suggests that UPS's pricing was deemed competitive among bidders. To benchmark effectively, one would need access to data from other federal agencies (e.g., US Marshals Service for prisoner transport) or state-level correctional departments for comparable services. Factors like volume, geographic scope, and specific security protocols significantly influence pricing. Given UPS's scale and established logistics network, their pricing is likely optimized for efficiency, but without direct comparative data, a definitive assessment of 'better' or 'worse' pricing is speculative.

What are the specific security and handling protocols mandated for inmate property transportation under this contract?

While the contract document itself may not detail every specific protocol, federal contracts for sensitive services like inmate property transportation typically include stringent requirements. These usually encompass chain-of-custody documentation at every transfer point, secure packaging and transport to prevent loss or damage, background checks for personnel handling the property, and adherence to all relevant federal and state regulations regarding the movement of goods and personal effects. The 'couriers and express delivery services' NAICS code (492110) indicates the primary service, but the context of inmate property implies enhanced security measures beyond standard package delivery. The Bureau of Prisons would have specific guidelines that UPS must meet to ensure the integrity and security of inmate belongings.

What is UPS's track record in handling government contracts, particularly those involving sensitive or secure logistics?

United Parcel Service (UPS) has a long and extensive history of handling large-scale government contracts across various agencies, including defense, postal services, and civilian departments. Their core business is logistics and delivery, making them a natural fit for many government needs. UPS has experience with secure transportation and supply chain management, which are critical for handling sensitive materials. While specific details of past performance on contracts directly analogous to inmate property transport might not be public, their overall track record as a major logistics provider suggests a capability to meet the demands of such a contract. Government contractors are typically evaluated on past performance, and UPS's continued success in securing federal contracts indicates a generally positive performance history.

What are the potential risks associated with relying on a single, large commercial carrier for inmate property transportation?

Relying on a single carrier like UPS for inmate property transportation presents several potential risks. Firstly, there's a risk of service disruption due to unforeseen events such as labor strikes, natural disasters affecting UPS's network, or major operational failures. Secondly, a lack of ongoing competition could potentially lead to price increases in future contract renewals if market conditions shift favorably for the incumbent. Thirdly, if UPS's performance falters or if they face significant challenges in meeting the specific, sensitive requirements of inmate property handling, the Bureau of Prisons has limited immediate alternatives. This dependence necessitates robust contract management and performance monitoring by the agency to mitigate these risks.

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: $17,924

Exercised Options: $17,924

Current Obligation: $17,924

Actual Outlays: $4,568

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HTC71123DC025

IDV Type: IDC

Timeline