DOJ's $31.2M FedEx Contract for Delivery Services Awarded via Full and Open Competition
Contract Overview
Contract Amount: $31,195,471 ($31.2M)
Contractor: Federal Express Corporation
Awarding Agency: Department of Justice
Start Date: 2018-11-09
End Date: 2022-01-31
Contract Duration: 1,179 days
Daily Burn Rate: $26.5K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: PPID28642 FEDEX EXPRESS SERVICES THE REQUIREMENT BROKEN DOWN INTO THREE DIFFERENT REQS: FEDEX EXPRESS, FEDEX FREIGHT, AND FEDEX CUSTOM CRITICAL. EACH FEDEX DIVISION HAS THEIR OWN DUNS # AND BANKING INFORMATION. ZBRA:FFD0321
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20001
Plain-Language Summary
Department of Justice obligated $31.2 million to FEDERAL EXPRESS CORPORATION for work described as: PPID28642 FEDEX EXPRESS SERVICES THE REQUIREMENT BROKEN DOWN INTO THREE DIFFERENT REQS: FEDEX EXPRESS, FEDEX FREIGHT, AND FEDEX CUSTOM CRITICAL. EACH FEDEX DIVISION HAS THEIR OWN DUNS # AND BANKING INFORMATION. ZBRA:FFD0321 Key points: 1. The contract, valued at $31.2 million, covers express, freight, and custom critical delivery services. 2. Awarded by the Department of Justice to Federal Express Corporation, it was procured through full and open competition. 3. The contract spans over three years, from November 2018 to January 2022. 4. The North American Industry Classification System (NAICS) code is 492110 for Couriers and Express Delivery Services.
Value Assessment
Rating: good
The contract value of $31.2 million appears reasonable for comprehensive delivery services over a multi-year period. Benchmarking against similar government-wide contracts for express and freight services would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded using full and open competition, indicating a robust price discovery process. This method allows multiple qualified vendors to bid, driving competitive pricing.
Taxpayer Impact: The use of full and open competition likely resulted in a fair market price, maximizing taxpayer value for essential delivery services.
Public Impact
Ensures timely delivery of critical documents and packages for law enforcement and government agencies. Supports the operational needs of the FBI and other DOJ components nationwide. Provides flexibility through different service levels (express, freight, custom critical). Facilitates inter-agency communication and operations through reliable logistics.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for price increases upon renewal if competition is not re-established.
- Dependence on a single vendor for critical delivery needs.
- Lack of specific performance metrics in the provided data.
Positive Signals
- Awarded through full and open competition, suggesting competitive pricing.
- Multi-year contract provides stability for agency operations.
- Covers diverse delivery needs (express, freight, critical).
Sector Analysis
The contract falls under the Couriers and Express Delivery Services sector. Government spending in this area is substantial, driven by the need for reliable and rapid transportation of goods and documents across various agencies.
Small Business Impact
The data indicates the primary awardee is Federal Express Corporation, a large business. There is no explicit information regarding subcontracting opportunities for small businesses within this specific delivery order.
Oversight & Accountability
The contract was awarded by the Department of Justice to the Federal Bureau of Investigation's needs, suggesting internal oversight. The use of full and open competition implies adherence to procurement regulations.
Related Government Programs
- Couriers and Express Delivery Services
- Department of Justice Contracting
- Federal Bureau of Investigation Programs
Risk Flags
- Potential for price increases in future contract actions.
- Sole reliance on FedEx for critical delivery services.
- Limited visibility into small business participation.
- Contract duration and specific performance metrics not fully detailed.
Tags
couriers-and-express-delivery-services, department-of-justice, dc, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Justice awarded $31.2 million to FEDERAL EXPRESS CORPORATION. PPID28642 FEDEX EXPRESS SERVICES THE REQUIREMENT BROKEN DOWN INTO THREE DIFFERENT REQS: FEDEX EXPRESS, FEDEX FREIGHT, AND FEDEX CUSTOM CRITICAL. EACH FEDEX DIVISION HAS THEIR OWN DUNS # AND BANKING INFORMATION. ZBRA:FFD0321
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 Bureau of Investigation).
What is the total obligated amount?
The obligated amount is $31.2 million.
What is the period of performance?
Start: 2018-11-09. End: 2022-01-31.
What was the average annual spending under this contract?
The total contract value was $31,195,471.30 over a period of 1179 days (approximately 3.23 years). This averages to roughly $9.66 million per year. This figure represents the total potential value across all delivery orders issued under the contract.
What are the primary risks associated with relying on FedEx for critical delivery services?
Key risks include service disruptions due to weather, labor issues, or operational failures within FedEx. There's also a risk of price escalation in future contracts if competition is limited. Dependence on a single provider can reduce negotiating leverage and flexibility.
How effectively does this contract meet the FBI's diverse delivery needs?
The contract's structure, broken down into express, freight, and custom critical services, suggests it's designed to meet diverse needs. The use of full and open competition implies a market-driven approach to ensure service quality and availability.
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
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Fedex Corp
Address: 2003 CORPORATE PLZ, MEMPHIS, TN, 38132
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $31,230,396
Exercised Options: $31,230,396
Current Obligation: $31,195,471
Actual Outlays: $12,711,797
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: DJJ16PSSV2676
IDV Type: IDC
Timeline
Start Date: 2018-11-09
Current End Date: 2022-01-31
Potential End Date: 2022-01-31 00:00:00
Last Modified: 2022-04-02
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