VA awards $200K delivery contract to UPS for Northern Indiana Healthcare Systems, Marion Campus

Contract Overview

Contract Amount: $200,000 ($200.0K)

Contractor: United Parcel Service CO.

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-04-01

End Date: 2026-09-30

Contract Duration: 182 days

Daily Burn Rate: $1.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: NORTHERN INDIANA HEALTHCARE SYSTEMS, MARION CAMPUS - SMALL PACKAGE DELIVERY

Place of Performance

Location: MARION, GRANT County, INDIANA, 46953

State: Indiana Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $200,000 to UNITED PARCEL SERVICE CO. for work described as: NORTHERN INDIANA HEALTHCARE SYSTEMS, MARION CAMPUS - SMALL PACKAGE DELIVERY Key points: 1. Contract awarded to a single, well-established provider, potentially limiting price negotiation. 2. Delivery services are essential for healthcare operations, indicating a critical need. 3. The contract duration is relatively short, suggesting potential for future re-competition. 4. Fixed-price contract type offers cost certainty for the government. 5. Geographic focus on Indiana may indicate regional service needs.

Value Assessment

Rating: good

The contract value of $200,000 for delivery services appears reasonable for a one-year period, especially considering the provider is United Parcel Service (UPS), a major logistics company. Benchmarking against similar federal contracts for express delivery services would provide a clearer picture of value for money. However, given the scale and nature of the services, the price point suggests a standard market rate for such operations.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' which implies that while competition was sought, certain sources were excluded. The specific reasons for exclusion are not detailed here, but this approach can sometimes limit the pool of potential bidders. The presence of two bids suggests some level of competition, but the exclusion of other sources warrants further investigation into the justification.

Taxpayer Impact: The exclusion of sources, even if justified, may have limited the potential for more competitive pricing, potentially costing taxpayers more than if a broader competition had been feasible.

Public Impact

Patients at the VA's Northern Indiana Healthcare Systems, Marion Campus, will benefit from timely and reliable delivery of medical supplies and documents. The contract ensures the continuity of essential healthcare support services. The primary geographic impact is within Indiana, specifically serving the Marion campus. The contract supports the operational workforce of the VA healthcare system by ensuring necessary logistical support.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for limited competition due to exclusion of sources.
Reliance on a single large provider could lead to less aggressive pricing in future renewals.

Positive Signals

Award to a reputable and experienced provider (UPS) ensures service reliability.
Fixed-price contract provides budget predictability.
Short contract duration allows for future reassessment of needs and competition.

Sector Analysis

The contract falls within the broad category of logistics and transportation services, a critical sector supporting government operations. The market for courier and express delivery services is highly competitive, dominated by large national and international players like UPS, FedEx, and DHL, as well as numerous smaller regional providers. Federal agencies frequently utilize these services for mail, package, and freight delivery, with spending often benchmarked against commercial rates.

Small Business Impact

This contract does not appear to have a small business set-aside. Given the award to a large, established corporation like UPS, there are no direct subcontracting implications for small businesses mentioned in this data. The focus is on a large prime contractor fulfilling a significant delivery need.

Oversight & Accountability

The Department of Veterans Affairs (VA) is responsible for oversight of this contract. As a delivery order under a larger contract vehicle, it is subject to standard procurement regulations and oversight. Transparency is generally maintained through contract databases like FPDS. Specific oversight mechanisms would include performance monitoring by the contracting officer's representative (COR) to ensure timely and accurate deliveries as per the contract terms.

Related Government Programs

Federal Express Delivery Services
USPS Mail Services
Healthcare Logistics Contracts
Department of Veterans Affairs Procurement

Risk Flags

Limited competition justification requires review.
Potential for price increases in future renewals if competition remains limited.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $200,000 to UNITED PARCEL SERVICE CO.. NORTHERN INDIANA HEALTHCARE SYSTEMS, MARION CAMPUS - SMALL PACKAGE DELIVERY

Who is the contractor on this award?

The obligated recipient is UNITED PARCEL SERVICE CO..

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 $200,000.

What is the period of performance?

Start: 2026-04-01. End: 2026-09-30.

What is the historical spending pattern for delivery services at the Northern Indiana Healthcare Systems, Marion Campus?

Historical spending data for delivery services specifically at the Northern Indiana Healthcare Systems, Marion Campus, is not provided in the current data. However, the Department of Veterans Affairs (VA) as a whole procures significant amounts of logistics and delivery services annually. To understand historical patterns for this specific campus, one would need to access detailed procurement records for the VA, potentially filtering by location and service type. This would reveal trends in contract values, providers used, and the duration of previous agreements, offering context for the current $200,000 award.

How does the pricing of this UPS contract compare to similar federal delivery contracts?

Direct comparison of this $200,000 contract value to similar federal delivery contracts is challenging without specific details on service levels, delivery volumes, and geographic scope. However, UPS is a major carrier, and federal contracts often aim to secure rates comparable to or better than commercial 'GSA Schedule' pricing or negotiated rates for large volume shippers. The fixed-price nature provides cost certainty. A detailed benchmark would require analyzing per-package costs, transit times, and service guarantees against other VA or federal agency contracts for similar express delivery needs.

What are the specific risks associated with using UPS for this healthcare delivery contract?

The primary risks associated with using UPS for this healthcare delivery contract are generally low due to their established reputation and infrastructure. However, potential risks include service disruptions due to unforeseen events (weather, labor disputes), potential delays impacting critical medical supplies, and data security if sensitive patient information is transmitted. Ensuring robust Service Level Agreements (SLAs) with clear penalties for non-performance and maintaining strong communication channels are key mitigation strategies. The 'limited' competition aspect also carries a risk of potentially higher costs over time if market alternatives are not actively considered.

What is the justification for 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' in this contract award?

The justification for 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' typically arises when a contracting agency has a valid reason to limit the pool of potential bidders, even while intending to compete the requirement. This could be due to specific technical requirements, existing infrastructure compatibility, or prior performance issues with certain vendors. Without further details from the VA's justification document (often called a J&A - Justification and Approval), it's difficult to ascertain the precise reason. However, it implies that while multiple sources were considered, some were deemed unsuitable or ineligible for specific, documented reasons.

How does this contract contribute to the VA's overall mission effectiveness?

This contract directly contributes to the VA's mission effectiveness by ensuring the reliable and timely delivery of essential goods and information to the Northern Indiana Healthcare Systems, Marion Campus. Efficient logistics are crucial for maintaining patient care, managing inventory of medical supplies, and facilitating administrative operations. By outsourcing these delivery services to a specialized provider like UPS, the VA can focus its internal resources on core healthcare functions, potentially improving operational efficiency and patient outcomes.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

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: $200,000

Exercised Options: $200,000

Current Obligation: $200,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HTC71123DC025

IDV Type: IDC

Timeline