SSA awards $4.47M delivery services contract to UPS under full and open competition
Contract Overview
Contract Amount: $4,466,500 ($4.5M)
Contractor: United Parcel Service CO.
Awarding Agency: Social Security Administration
Start Date: 2025-03-27
End Date: 2026-03-31
Contract Duration: 369 days
Daily Burn Rate: $12.1K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: TASK ORDER FOR DOMESTIC DELIVERY SERVICES PAID BY INVOICE
Place of Performance
Location: LOUISVILLE, JEFFERSON County, KENTUCKY, 40223
State: Kentucky Government Spending
Plain-Language Summary
Social Security Administration obligated $4.5 million to UNITED PARCEL SERVICE CO. for work described as: TASK ORDER FOR DOMESTIC DELIVERY SERVICES PAID BY INVOICE Key points: 1. Contract value of $4.47M for domestic delivery services. 2. Awarded to United Parcel Service (UPS). 3. Procured under full and open competition. 4. Covers a period of 369 days. 5. Sector is Couriers and Express Delivery Services.
Value Assessment
Rating: good
The contract value of $4.47M for 369 days of delivery services appears reasonable given the scope. Benchmarking against similar federal contracts for courier and express delivery services would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition after exclusion of sources, indicating a robust price discovery process. This method generally leads to competitive pricing.
Taxpayer Impact: The use of full and open competition suggests that taxpayers are likely receiving a fair price for the delivery services.
Public Impact
Ensures timely delivery of essential documents and items for the Social Security Administration. Supports the operational efficiency of a major federal agency. Provides reliable logistics for government services impacting citizens.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for price increases in future contract renewals.
- Dependence on a single vendor for critical delivery needs.
Positive Signals
- Awarded through full and open competition.
- Clear contract duration and defined services.
- Utilizes a well-established delivery provider.
Sector Analysis
The Couriers and Express Delivery Services sector is highly competitive, with numerous providers offering a range of services. Federal spending in this area typically focuses on reliability, speed, and cost-effectiveness for mail and package delivery.
Small Business Impact
The data indicates this contract was awarded to United Parcel Service (UPS), a large corporation. There is no explicit indication of small business participation in this specific task order.
Oversight & Accountability
The contract was awarded by the Social Security Administration, which is subject to standard federal procurement oversight. The 'full and open competition' clause suggests adherence to competitive bidding regulations.
Related Government Programs
- Couriers and Express Delivery Services
- Social Security Administration Contracting
- Social Security Administration Programs
Risk Flags
- Vendor lock-in potential
- Service disruption risk
- Price escalation in future renewals
- Limited visibility into small business subcontracting
Tags
couriers-and-express-delivery-services, social-security-administration, ky, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Social Security Administration awarded $4.5 million to UNITED PARCEL SERVICE CO.. TASK ORDER FOR DOMESTIC DELIVERY SERVICES PAID BY INVOICE
Who is the contractor on this award?
The obligated recipient is UNITED PARCEL SERVICE CO..
Which agency awarded this contract?
Awarding agency: Social Security Administration (Social Security Administration).
What is the total obligated amount?
The obligated amount is $4.5 million.
What is the period of performance?
Start: 2025-03-27. End: 2026-03-31.
What is the historical pricing trend for similar delivery services procured by the SSA?
Analyzing historical pricing for similar delivery services procured by the SSA would reveal if the current $4.47M award is consistent with past expenditures or represents an increase. This context is crucial for assessing long-term value and identifying potential cost efficiencies or escalations over time.
What are the key performance indicators (KPIs) for this delivery contract and how is performance monitored?
Understanding the KPIs, such as on-time delivery rates, package condition, and tracking accuracy, is vital for assessing the effectiveness of UPS's service. Robust monitoring mechanisms by the SSA ensure accountability and allow for timely intervention if performance deviates from contractual requirements.
Are there any contingency plans in place should UPS experience significant service disruptions?
Given the reliance on a single provider, contingency planning is important. The SSA should have alternative arrangements or protocols to ensure continuity of essential delivery services in the event of unforeseen disruptions affecting UPS, such as labor strikes or natural disasters.
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: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 4
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: $4,466,500
Exercised Options: $4,466,500
Current Obligation: $4,466,500
Actual Outlays: $1,350,986
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HTC71123DC025
IDV Type: IDC
Timeline
Start Date: 2025-03-27
Current End Date: 2026-03-31
Potential End Date: 2026-03-31 00:00:00
Last Modified: 2026-04-09
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