VA awards $675K contract to FedEx for blood delivery services in Illinois

Contract Overview

Contract Amount: $67,500 ($67.5K)

Contractor: Federal Express Corporation

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-04-01

End Date: 2026-03-31

Contract Duration: 364 days

Daily Burn Rate: $185/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: FED EX BLOOD DELIVERY SERVICE FOR 556

Place of Performance

Location: NORTH CHICAGO, LAKE County, ILLINOIS, 60064

State: Illinois Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $67,500 to FEDERAL EXPRESS CORPORATION for work described as: FED EX BLOOD DELIVERY SERVICE FOR 556 Key points: 1. FedEx secured a $675,000 contract for blood delivery, highlighting the reliance on established logistics providers. 2. The contract value is modest, suggesting a focused scope for this specific delivery need. 3. Competition was full and open, indicating a healthy market for courier services. 4. The sector is essential healthcare logistics, crucial for timely medical supply chain operations.

Value Assessment

Rating: good

The contract value of $675,000 for a 364-day period appears reasonable for specialized delivery services. Benchmarking against similar contracts for medical courier services would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and ensures fair market value.

Taxpayer Impact: The use of competitive bidding is expected to yield a fair price, minimizing unnecessary taxpayer expenditure for this essential service.

Public Impact

Ensures timely and reliable delivery of critical blood supplies for veterans. Supports the Department of Veterans Affairs' healthcare mission by maintaining an efficient supply chain. Leverages a well-known private sector logistics provider for specialized delivery needs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for increased costs if delivery volumes exceed projections.
Reliance on a single vendor for a critical service.

Positive Signals

Utilizes a proven and experienced logistics provider.
Competitive bidding process likely secured a fair price.
Supports essential healthcare operations for veterans.

Sector Analysis

This contract falls within the couriers and express delivery services sector, which is vital for the healthcare industry's supply chain. Spending in this area is driven by the need for rapid and secure transport of sensitive materials.

Small Business Impact

The contract was awarded to FedEx Corporation, a large business. There is no indication that small businesses were involved in this specific award, which is common for large-scale logistics contracts.

Oversight & Accountability

The Department of Veterans Affairs is responsible for overseeing this contract. Standard oversight mechanisms for delivery services, including performance monitoring and payment verification, would be in place.

Related Government Programs

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

Risk Flags

Potential for price escalation in future contract renewals.
Dependence on a single provider for a critical service.
Lack of small business participation in this specific award.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $67,500 to FEDERAL EXPRESS CORPORATION. FED EX BLOOD DELIVERY SERVICE FOR 556

Who is the contractor on this award?

The obligated recipient is FEDERAL EXPRESS CORPORATION.

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 $67,500.

What is the period of performance?

Start: 2025-04-01. End: 2026-03-31.

What is the historical cost per delivery for similar blood transport services?

Benchmarking the per-delivery cost against historical data for similar medical courier services is crucial for a comprehensive value assessment. Without this specific data, it's difficult to definitively state if the $675,000 contract represents optimal value. However, given the full and open competition, it suggests a competitive market price was likely achieved.

What are the contingency plans if FedEx experiences service disruptions?

Contingency planning for service disruptions is a key risk mitigation strategy. The VA should have protocols in place, potentially including alternative carrier arrangements or emergency procedures, to ensure continuity of blood delivery. The contract terms may also specify penalties or requirements for backup plans from FedEx.

How does this contract contribute to the overall efficiency of the VA's blood supply chain?

This contract directly contributes to the VA's blood supply chain by ensuring reliable and timely delivery of blood products. By outsourcing this function to an experienced provider like FedEx, the VA can focus on its core medical services, potentially improving overall operational efficiency and patient care 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: 3

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: $165,000

Exercised Options: $67,500

Current Obligation: $67,500

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HTC71123DC023

IDV Type: IDC

Timeline