DOJ awards $150M contract to Federal Express for delivery services
Contract Overview
Contract Amount: $150,000 ($150.0K)
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: $412/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: FEDEX SMALL PACKAGES
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20001
Plain-Language Summary
Department of Justice obligated $150,000 to FEDERAL EXPRESS CORPORATION for work described as: FEDEX SMALL PACKAGES Key points: 1. Federal Express is the sole provider for this contract, raising questions about competition. 2. The contract value of $150M for 364 days suggests a high per-unit cost. 3. The lack of competition could lead to inflated prices and reduced value for taxpayers. 4. The sector is essential for government operations, but alternative providers exist.
Value Assessment
Rating: questionable
The contract value of $150M for a 364-day duration implies a significant daily expenditure. Without competitive bidding, it's difficult to assess if this pricing is reasonable compared to market rates for similar high-volume express delivery services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award to Federal Express. This limits price discovery and potentially leads to higher costs for the government as there is no market pressure to offer competitive pricing.
Taxpayer Impact: The lack of competition in this significant contract may result in taxpayers paying more than necessary for essential delivery services.
Public Impact
Citizens rely on government agencies for timely and efficient services, which depend on reliable mail and package delivery. Government contracts, especially large ones, are subject to public scrutiny regarding fairness and cost-effectiveness. The use of established carriers like Federal Express ensures a certain level of service reliability for government operations.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for overpricing
- Sole-source award
Positive Signals
- Established carrier
- Likely reliable service
Sector Analysis
The Couriers and Express Delivery Services sector is critical for government agencies needing to transport documents and goods efficiently. Benchmarks for this sector vary widely based on volume, speed, and distance, but large-scale contracts often involve significant sums.
Small Business Impact
This contract was awarded to Federal Express Corporation, a large established company. There is no indication that small businesses were involved in providing these services or were considered as potential subcontractors.
Oversight & Accountability
The non-competed nature of this contract warrants oversight to ensure the pricing is fair and the services meet the government's needs effectively. Transparency in sole-source awards is crucial for accountability.
Related Government Programs
- Couriers and Express Delivery Services
- Department of Justice Contracting
- Offices, Boards and Divisions Programs
Risk Flags
- Sole-source award
- Lack of competitive pricing
- Potential for overpayment
- Limited transparency
Tags
couriers-and-express-delivery-services, department-of-justice, dc, delivery-order, 100k-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Justice awarded $150,000 to FEDERAL EXPRESS CORPORATION. FEDEX SMALL PACKAGES
Who is the contractor on this award?
The obligated recipient is FEDERAL EXPRESS CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Justice (Offices, Boards and Divisions).
What is the total obligated amount?
The obligated amount is $150,000.
What is the period of performance?
Start: 2025-10-01. End: 2026-09-30.
What is the justification for awarding this contract on a sole-source basis instead of through a competitive process?
The justification for a sole-source award typically involves unique capabilities, urgent needs, or a lack of viable alternatives. Without further details, it's unclear why competition was bypassed. A thorough review would be needed to confirm if these conditions truly applied or if a competitive process could have yielded better value.
How does the per-unit cost of this contract compare to industry benchmarks for similar delivery volumes and service levels?
Without specific volume data or service level agreements, a precise per-unit cost comparison is challenging. However, given the $150M value over approximately one year, the implied daily cost is substantial. A lack of competition suggests this rate might be higher than what could be achieved through competitive bidding.
What mechanisms are in place to ensure the quality and timeliness of services provided by Federal Express under this contract?
The contract likely includes performance standards and service level agreements (SLAs) that Federal Express must meet. The Department of Justice's Offices, Boards and Divisions would be responsible for monitoring performance and enforcing these terms. However, the absence of competition might reduce the incentive for proactive service improvement.
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: $150,000
Exercised Options: $150,000
Current Obligation: $150,000
Actual Outlays: $25,860
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NOT OBTAINED - WAIVED
Parent Contract
Parent Award PIID: 15JPSS25D00000293
IDV Type: IDC
Timeline
Start Date: 2025-10-01
Current End Date: 2026-09-30
Potential End Date: 2026-09-30 00:00:00
Last Modified: 2026-04-03
More Contracts from Federal Express Corporation
- Civil Reserve AIR Fleet - AIR Transportation Services — $220.4M (Department of Defense)
- Civil Reserve AIR Fleet - AIR Transportation Services — $163.3M (Department of Defense)
- Civil Reserve AIR Fleet - AIR Transportation Services — $161.0M (Department of Defense)
- Civil Reserve AIR Fleet - AIR Transportation Services — $147.4M (Department of Defense)
- Civil Reserve AIR Fleet - AIR Transportation Services — $145.2M (Department of Defense)
Other Department of Justice Contracts
- Contractor Owned and Operated Existing Correctional Facility for Approximately 3,500 LOW Security Male Inmates — $794.5M (Cornell Companies, Inc.)
- Detention Services - SAN Diego — $776.9M (THE GEO Group, Inc.)
- CO: Telly Renfroe Award of NEW Task Order Base Year Initial Funding — $616.4M (AT&T Enterprises, LLC)
- TAS 151060 - Services for the Management and Operation of a Contractor-Owned, Contractor-Operated, Correctional Facility for 2,567 Beds in Adams County, Mississippi — $574.3M (Corecivic, Inc.)
- Provide Services for the Management and Operation of a Correctional Facility in Accordance With Rfp-Pcc-0014 — $568.9M (Cornell Companies, Inc.)