Federal Prison System awards $1.17M contract for delivery services to Federal Express Corporation

Contract Overview

Contract Amount: $117,000 ($117.0K)

Contractor: Federal Express Corporation

Awarding Agency: Department of Justice

Start Date: 2025-10-01

End Date: 2026-09-30

Contract Duration: 364 days

Daily Burn Rate: $321/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: WORLD WIDE DELIVERY SERVICES

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20001

State: District of Columbia Government Spending

Plain-Language Summary

Department of Justice obligated $117,000 to FEDERAL EXPRESS CORPORATION for work described as: WORLD WIDE DELIVERY SERVICES Key points: 1. Contract awarded to a single, well-established provider suggests potential for streamlined operations. 2. The firm fixed-price structure provides cost certainty for the government. 3. Limited competition may impact price negotiation and value for money. 4. The contract duration of one year aligns with operational needs for delivery services. 5. Geographic focus on Washington D.C. indicates localized service requirements. 6. The absence of small business set-asides means limited direct impact on small business participation.

Value Assessment

Rating: fair

The contract value of $1.17 million for a one-year delivery services agreement with Federal Express is difficult to benchmark without more specific service details. Given the provider is a major logistics company, the pricing is likely competitive within the express delivery market. However, the lack of competition for this specific award prevents a robust value-for-money assessment against alternative providers or service levels. The firm fixed-price nature offers predictability but may not capture the most cost-effective solution if service demands fluctuate significantly.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning Federal Express Corporation was the only vendor considered. This approach is typically used when a specific vendor's capabilities are uniquely required, or in situations where competition is not feasible or practical. The lack of a competitive bidding process means that the government did not explore potential cost savings or service enhancements that might have been available from other qualified couriers and express delivery services.

Taxpayer Impact: A sole-source award limits the government's ability to leverage market competition to secure the best possible pricing and terms for taxpayers. This can potentially lead to higher costs compared to a fully competed contract.

Public Impact

The Federal Prison System, specifically the Bureau of Prisons, will benefit from reliable and timely delivery of mail, packages, and other essential items. Services delivered include express courier and delivery for official documents, supplies, and inmate-related correspondence. The geographic impact is concentrated in Washington D.C., supporting the operational needs of federal correctional facilities and administrative offices in the capital. The contract supports the workforce of Federal Express Corporation, contributing to employment in the logistics and delivery sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price discovery and potential savings.
Lack of transparency in the selection process for this sole-source award.
Potential for higher costs due to absence of competitive pressure.

Positive Signals

Award to a reputable and experienced provider (Federal Express).
Firm fixed-price contract provides budget certainty.
Clear service period (one year) with defined end dates.

Sector Analysis

The couriers and express delivery services sector is a mature and highly competitive market dominated by large global players and numerous regional and local providers. Federal Express Corporation is a significant entity within this industry. This contract, valued at $1.17 million, represents a modest expenditure within the broader federal spending on logistics and transportation services. Comparable spending benchmarks would typically involve analyzing the volume and speed of deliveries, as well as the geographic scope, to assess the cost-effectiveness of this specific award.

Small Business Impact

This contract was not awarded as a small business set-aside, nor does it appear to have specific subcontracting requirements for small businesses mentioned in the provided data. Therefore, the direct impact on the small business ecosystem is likely minimal. Federal Express Corporation, as a large business, will be the primary recipient of the contract funds, with any small business involvement dependent on their internal subcontracting practices or supply chain choices.

Oversight & Accountability

Oversight for this contract will primarily reside with the contracting officers and program managers within the Department of Justice's Federal Prison System. As a firm fixed-price contract, oversight will focus on ensuring timely and complete delivery of services as specified in the contract terms. Transparency is limited due to the sole-source nature of the award. There is no specific mention of an Inspector General's jurisdiction for this particular award, though the DOJ IG typically oversees a broad range of departmental activities.

Related Government Programs

Federal Express Corporation Contracts
Department of Justice Delivery Services
Bureau of Prisons Logistics
Express Mail Services
Government Courier Contracts

Risk Flags

Sole-source award
Lack of competition
Potential for higher costs
Limited transparency in selection

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $117,000 to FEDERAL EXPRESS CORPORATION. WORLD WIDE DELIVERY SERVICES

Who is the contractor on this award?

The obligated recipient is FEDERAL EXPRESS CORPORATION.

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 $117,000.

What is the period of performance?

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

What is the historical spending pattern for delivery services by the Federal Prison System?

Analyzing historical spending patterns for delivery services by the Federal Prison System (FPS) is crucial for understanding the context of the $1.17 million Federal Express contract. Without specific historical data, we can infer general trends. Government agencies, including correctional systems, rely heavily on reliable delivery services for everything from official mail and legal documents to supplies and inmate communications. Historically, agencies have utilized a mix of contract types and providers, often balancing cost, speed, and reliability. The FPS, operating nationwide, would likely have significant needs for both routine and expedited deliveries. Past contracts may have involved multiple vendors, including smaller, regional couriers, or potentially larger firms like FedEx or UPS, depending on specific needs and competitive bidding outcomes. A trend towards consolidating services with major providers for efficiency or leveraging sole-source agreements for specialized needs could also be present. Understanding if this $1.17 million award represents an increase, decrease, or stable level of spending compared to previous years, and whether it's a shift towards or away from competitive sourcing, would provide significant insight into the agency's procurement strategy and value realization.

How does the pricing of this Federal Express contract compare to similar government delivery contracts?

Benchmarking the pricing of this $1.17 million Federal Express contract against similar government delivery contracts is challenging without detailed service level agreements (SLAs) and volume data. Federal Express is a major player in the logistics market, and its pricing for government contracts is often influenced by established rate cards, volume discounts, and the specific terms negotiated. However, since this contract was awarded sole-source, direct price comparison with competitively bid contracts is difficult. Competitively bid contracts often yield lower prices due to market pressure. To perform a robust comparison, one would need to analyze contracts for similar volumes of express deliveries, within comparable geographic areas (like the D.C. metro area), and for similar timeframes (one-year duration). Factors such as guaranteed delivery times, package weight/size limits, tracking capabilities, and insurance would also need to be aligned. Without this granular data, assessing whether the $1.17 million represents a fair market price is speculative, though Federal Express's market position suggests a baseline level of service quality.

What are the primary risks associated with a sole-source award for essential delivery services?

The primary risks associated with a sole-source award for essential delivery services like this one to Federal Express include potential overpayment, reduced service innovation, and a lack of flexibility. Without competition, the government loses the leverage to negotiate the lowest possible price, potentially leading to higher costs for taxpayers. The absence of competing vendors can also stifle innovation, as the incumbent provider may have less incentive to introduce new technologies or more efficient service models. Furthermore, if the sole-source provider experiences operational issues (e.g., labor disputes, natural disasters impacting their network), the government has limited alternative options for ensuring continuity of essential services, increasing vulnerability to disruptions. Dependence on a single provider can also create long-term strategic risks if their business priorities shift or if they decide to exit certain market segments.

What is the track record of Federal Express Corporation in fulfilling government contracts, particularly for correctional facilities?

Federal Express Corporation (FedEx) has a long-standing and extensive track record of fulfilling contracts with various U.S. government agencies, including those requiring logistics and delivery services. Their experience spans decades, encompassing a wide range of services from routine mail and package delivery to specialized freight and time-critical shipments. While specific contract details with correctional facilities like the Bureau of Prisons (BOP) are not publicly detailed in this award notice, FedEx routinely handles deliveries to government installations nationwide. Their performance is generally characterized by a robust infrastructure, advanced tracking systems, and a commitment to delivery timelines. Government agencies often select FedEx due to its reliability, global reach, and established processes for handling secure and sensitive materials. However, like any large contractor, there can be instances of performance issues or disputes, which are typically managed through contract administration and performance management processes. The BOP's decision to award this contract suggests confidence in FedEx's ability to meet their specific operational requirements.

How does the geographic focus on Washington D.C. impact the service delivery and cost-effectiveness of this contract?

The geographic focus on Washington D.C. for this Federal Express delivery services contract has several implications for service delivery and cost-effectiveness. D.C. is a densely populated urban area with a well-established logistics infrastructure, which generally supports efficient and timely deliveries. Federal Express likely has a strong operational presence and network within the capital, potentially leading to faster transit times and more predictable service compared to more remote or geographically challenging areas. This concentration can also lead to cost efficiencies for the provider due to optimized routing and reduced travel distances between delivery points. For the Federal Prison System, this localized focus means that critical deliveries within the D.C. area should be handled promptly, supporting the day-to-day operations of facilities and administrative offices. However, the cost-effectiveness is still tied to the overall pricing structure; while operational efficiency in D.C. might be high, the sole-source nature of the award means the government may not fully capture the potential savings that could arise from competitive bidding among providers with strong D.C. presences.

Industry Classification

NAICS: Transportation and Warehousing › Couriers and Express Delivery Services › Couriers and Express Delivery Services

Product/Service Code: TRANSPORT, TRAVEL, RELOCATION › TRANSPORTATION OF THINGS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Fedex Corp

Address: 3610 HACKS CROSS RD, MEMPHIS, TN, 38125

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $117,000

Exercised Options: $117,000

Current Obligation: $117,000

Actual Outlays: $37,444

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NOT OBTAINED - WAIVED

Parent Contract

Parent Award PIID: 15JPSS25D00000293

IDV Type: IDC

Timeline