DOJ's $13.06M inmate shipping contract awarded to UPS for FY26, highlighting reliance on established couriers

Contract Overview

Contract Amount: $13,058 ($13.1K)

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: $36/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: FY26 INMATE SHIPPING ACCOUNT: 14W14X4 FIELD NOTICE #0002 OCTOBER 1, 2025 - SEPTEMBER 30, 2026 CONTRACT HTC71123DC025

Place of Performance

Location: LOUISVILLE, JEFFERSON County, KENTUCKY, 40223

State: Kentucky Government Spending

Plain-Language Summary

Department of Justice obligated $13,058 to UNITED PARCEL SERVICE CO. for work described as: FY26 INMATE SHIPPING ACCOUNT: 14W14X4 FIELD NOTICE #0002 OCTOBER 1, 2025 - SEPTEMBER 30, 2026 CONTRACT HTC71123DC025 Key points: 1. Contract leverages established courier infrastructure for efficient inmate transport. 2. Sole awardee suggests a mature market for this specialized service. 3. Fixed-price contract provides cost certainty for the Bureau of Prisons. 4. Short duration indicates potential for re-competition or service adjustments. 5. Geographic focus on Kentucky suggests regional operational needs. 6. High reliance on a single provider may pose a risk if service is disrupted.

Value Assessment

Rating: good

The contract value of $13.06 million for a one-year period appears reasonable given the specialized nature of inmate transportation. While direct comparisons are difficult due to the niche service, UPS is a major logistics provider with established networks capable of handling such requirements. The firm fixed-price structure helps manage cost predictability for the Federal Prison System.

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 competition was open, specific sources may have been excluded based on pre-defined criteria. The data does not specify the number of bidders, but the award to a single entity suggests that UPS was the most competitive offeror. This type of competition aims to ensure fair pricing and access to qualified providers.

Taxpayer Impact: This competitive process is intended to secure the best value for taxpayers by ensuring that multiple qualified vendors have the opportunity to bid, driving down costs and improving service quality.

Public Impact

Benefits the Federal Prison System by ensuring secure and timely transportation of inmates. Services delivered include the movement of individuals between correctional facilities or to court appearances. Geographic impact is primarily within Kentucky, serving the needs of federal correctional institutions in the state. Workforce implications are minimal for the government, relying on the contractor's personnel for service delivery.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential over-reliance on a single vendor for a critical service.
Limited visibility into the specific security protocols and personnel vetting for inmate transport.
Geographic concentration may not cover all potential future needs outside of Kentucky.

Positive Signals

Leverages the extensive logistical network and experience of a major carrier like UPS.
Firm fixed-price contract provides budget certainty.
Awarded through a competitive process, suggesting a fair market price was achieved.

Sector Analysis

The contract falls within the 'Couriers and Express Delivery Services' sector, a mature industry dominated by large players like UPS, FedEx, and DHL. While these companies primarily focus on package delivery, they possess the infrastructure and expertise to offer specialized logistics services, such as secure transportation. The market size for inmate transportation services is niche, often requiring specific security clearances and operational protocols, making it a specialized segment within broader logistics.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. The award to a large, established corporation like UPS suggests that the nature of the service and the scale of operations may be better suited for larger entities with extensive logistical capabilities.

Oversight & Accountability

Oversight for this contract would primarily reside with the contracting officer and the Federal Prison System (Bureau of Prisons) within the Department of Justice. Accountability measures are typically embedded in the contract's performance work statement, outlining delivery standards, security requirements, and reporting obligations. Transparency is facilitated through contract award databases, though specific operational details of inmate movement are sensitive.

Related Government Programs

Federal Prisoner Transportation Services
Secure Logistics Contracts
Department of Justice Logistics
Bureau of Prisons Support Services

Risk Flags

Single Source Reliance
Potential for Service Disruption
Limited Competitive Benchmarking

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $13,058 to UNITED PARCEL SERVICE CO.. FY26 INMATE SHIPPING ACCOUNT: 14W14X4 FIELD NOTICE #0002 OCTOBER 1, 2025 - SEPTEMBER 30, 2026 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 $13,058.

What is the period of performance?

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

What is the track record of United Parcel Service (UPS) in handling government contracts, particularly those involving sensitive or secure transportation?

United Parcel Service (UPS) has a long history of performing government contracts across various agencies, including the Department of Defense and the Postal Service. Their experience spans logistics, transportation, and delivery services. While specific details on secure inmate transportation contracts are not publicly detailed, UPS's core business involves the secure and timely movement of goods and packages globally. They possess robust tracking systems, security protocols, and a large fleet, which are foundational capabilities for handling sensitive government requirements. Their performance on past contracts generally indicates reliability, though like any large contractor, specific contract performance can vary.

How does the cost of this inmate shipping contract compare to similar services or historical spending by the Federal Prison System?

Direct cost comparisons for inmate shipping contracts are challenging due to the specialized nature of the service and variations in geographic scope, security levels, and duration. The $13.06 million for a one-year contract with UPS represents a significant investment. Historical data for the Federal Prison System's inmate transportation spending would be needed for a precise benchmark. However, given UPS's scale and the firm fixed-price nature, the cost is likely reflective of market rates for a reliable, large-scale logistics provider. The absence of multiple bids in the provided data makes a detailed value-for-money assessment difficult without further context on the competitive landscape.

What are the primary risks associated with awarding this inmate shipping contract to a single provider like UPS?

The primary risk associated with awarding this contract to a single provider, United Parcel Service (UPS), is service disruption. If UPS experiences operational issues, labor disputes, or unforeseen events that impact their ability to perform, the Federal Prison System could face significant challenges in transporting inmates, potentially affecting court appearances, facility transfers, and overall correctional operations. Another risk is potential complacency or reduced incentive for optimal performance and cost control over time, although the firm fixed-price contract mitigates some financial risk. The limited competition also means less leverage for the government in future negotiations if alternative providers are not readily available or qualified.

How effective is the 'full and open competition after exclusion of sources' method in ensuring value for taxpayer money in this context?

The 'full and open competition after exclusion of sources' method aims to balance broad competition with specific requirements. In this context, it suggests that while the initial solicitation was open, certain potential bidders may have been excluded based on specific qualifications, security clearances, or capabilities deemed essential for inmate transport. This can lead to a more focused competition among highly qualified vendors, potentially ensuring a higher quality of service. However, if the exclusions were too broad or not well-justified, it could limit the number of bidders, potentially reducing price competition and the overall value realized by taxpayers compared to a truly unrestricted full and open competition.

What are the potential implications of this contract on the broader market for inmate transportation services?

This contract, awarded to a major logistics provider like UPS, could signal a trend towards utilizing established, large-scale carriers for specialized government transportation needs. It might indicate that the Federal Prison System prioritizes reliability, existing infrastructure, and proven operational capacity over potentially smaller, more specialized niche providers. This could make it more challenging for smaller companies to enter or compete in this specific government contracting space, potentially consolidating the market among larger players who can meet stringent requirements and scale. It also highlights the government's reliance on the private sector for essential support services.

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: $13,058

Exercised Options: $13,058

Current Obligation: $13,058

Actual Outlays: $1,583

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HTC71123DC025

IDV Type: IDC

Timeline