VA Awards $5.3M for Courier Services to FG Management Group LLC

Contract Overview

Contract Amount: $529,550 ($529.5K)

Contractor: FG Management Group LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-09-01

End Date: 2026-08-31

Contract Duration: 729 days

Daily Burn Rate: $726/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: COURIER SERVICES

Place of Performance

Location: BIRMINGHAM, JEFFERSON County, ALABAMA, 35233

State: Alabama Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $529,550 to FG MANAGEMENT GROUP LLC for work described as: COURIER SERVICES Key points: 1. The Department of Veterans Affairs (VA) is procuring courier services valued at $5.3 million. 2. The contract was competed under Simplified Acquisition Procedures (SAP), suggesting a focus on smaller procurements. 3. FG Management Group LLC, the awardee, will provide services for 729 days. 4. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 5. This procurement falls within the Couriers and Express Delivery Services sector.

Value Assessment

Rating: fair

The award amount of $5.3 million for a 2-year courier service contract appears reasonable given the scope. Benchmarking against similar federal contracts for courier services would provide a more definitive assessment of value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was competed under Simplified Acquisition Procedures (SAP), which typically involves a limited number of offers. While SAP aims for efficiency, it may not always yield the lowest possible price compared to full and open competition.

Taxpayer Impact: The use of SAP suggests an effort to streamline the procurement process for a moderate value contract, potentially balancing speed with cost-effectiveness for taxpayers.

Public Impact

Ensures timely delivery of critical documents and supplies for VA operations. Supports the VA's mission to provide healthcare and benefits to veterans. Provides employment opportunities through FG Management Group LLC. Impacts the logistics and delivery sector within Alabama.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition due to SAP.
Potential for higher pricing compared to full and open competition.
Contract duration of 2 years may not capture long-term market efficiencies.

Positive Signals

Awarded to a specific company, FG Management Group LLC.
Firm Fixed Price contract shifts cost risk to the contractor.
Procurement is for essential courier services.

Sector Analysis

This procurement falls within the broader logistics and transportation sector, specifically focusing on courier and express delivery services. Federal spending in this area supports agency operations and the movement of goods and information.

Small Business Impact

The contract was competed under SAP, which can sometimes favor small businesses. However, without specific set-aside information, it's unclear if small businesses were specifically targeted or if FG Management Group LLC is an SMB.

Oversight & Accountability

The Department of Veterans Affairs is responsible for overseeing this contract to ensure timely and reliable courier services. Performance metrics within the purchase order will be key to accountability.

Related Government Programs

Couriers and Express Delivery Services
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Limited competition.
Potential for price not being optimized due to SAP.
Lack of detailed performance metrics in summary data.
Unclear if small business goals were met.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $529,550 to FG MANAGEMENT GROUP LLC. COURIER SERVICES

Who is the contractor on this award?

The obligated recipient is FG MANAGEMENT GROUP LLC.

Which agency awarded this contract?

Awarding agency: Department of Veterans Affairs (Department of Veterans Affairs).

What is the total obligated amount?

The obligated amount is $529,550.

What is the period of performance?

Start: 2024-09-01. End: 2026-08-31.

What is the specific scope of services included in this courier contract?

The provided data indicates the contract is for 'COURIER SERVICES' and falls under the NAICS code '492110' for Couriers and Express Delivery Services. However, the precise details of the services, such as types of items transported, delivery speed requirements, and geographic coverage, are not specified in this summary. Further review of the contract document would be necessary to understand the full scope.

How does the pricing compare to industry benchmarks for similar courier services?

A direct comparison of the $5.3 million award for a 2-year contract is difficult without detailed service level agreements and volume data. While the contract is Firm Fixed Price, indicating cost risk transfer, the unit cost or price per delivery would be needed to benchmark against industry standards. The use of SAP might also imply a price that is not the absolute lowest achievable.

What are the key performance indicators (KPIs) for FG Management Group LLC under this contract?

The provided data does not specify the Key Performance Indicators (KPIs) for FG Management Group LLC. Typically, courier service contracts include metrics related to on-time delivery rates, package integrity, response times, and customer satisfaction. The Department of Veterans Affairs would monitor these KPIs to ensure contract compliance and service effectiveness.

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: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 36C24723Q0804

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 40 BROWN AVE, SPRINGFIELD, NJ, 07081

Business Categories: 8(a) Program Participant, Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $1,441,513

Exercised Options: $529,550

Current Obligation: $529,550

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline