VA awards $5.38M for NGDS Small Package Delivery Services to United Parcel Service

Contract Overview

Contract Amount: $5,380,809 ($5.4M)

Contractor: United Parcel Service CO.

Awarding Agency: Department of Veterans Affairs

Start Date: 2018-09-16

End Date: 2023-03-31

Contract Duration: 1,657 days

Daily Burn Rate: $3.2K/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: NGDS SMALL PACKAGE DELIVERY SERVICES FOR VISN 15 FACILITIES

Place of Performance

Location: LOUISVILLE, JEFFERSON County, KENTUCKY, 40223

State: Kentucky Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $5.4 million to UNITED PARCEL SERVICE CO. for work described as: NGDS SMALL PACKAGE DELIVERY SERVICES FOR VISN 15 FACILITIES Key points: 1. Contract awarded to a single, well-established provider (UPS). 2. The service falls under the broad 'Couriers and Express Delivery Services' industry. 3. Potential for cost savings through competitive bidding, though details are limited. 4. Long-term contract duration (over 5 years) suggests a consistent need.

Value Assessment

Rating: good

The contract's total award value is $5.38 million over approximately 5 years. Without specific per-delivery data or comparison points for similar VA contracts, a precise value assessment is difficult, but the amount seems reasonable for nationwide package delivery services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating some initial competition but potentially limiting the pool of bidders. This method might impact price discovery compared to unrestricted full and open competition.

Taxpayer Impact: The use of competitive bidding, even if limited, aims to secure reasonable prices for taxpayers. The final price reflects the negotiated terms with the selected vendor.

Public Impact

Ensures timely delivery of essential packages to Veterans Affairs facilities nationwide. Supports the operational needs of VISN 15 facilities, impacting healthcare and administrative functions. Relies on a major logistics provider, potentially leveraging existing infrastructure for efficiency.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may not have yielded the absolute lowest price.
Contract duration could lead to price increases if not managed effectively.
Dependence on a single carrier for critical deliveries.

Positive Signals

Awarded to a reputable and experienced carrier.
Contract aims to meet specific delivery needs for VA facilities.
Fixed-price contract provides cost predictability.

Sector Analysis

The contract falls within the broad couriers and express delivery services sector, which is essential for government operations. Benchmarks for this sector vary widely based on volume, distance, and service level, making direct comparison challenging without more granular data.

Small Business Impact

The data indicates this contract was awarded to United Parcel Service, a large corporation. There is no explicit information suggesting opportunities for small businesses within this specific award, though they may participate in subcontracting.

Oversight & Accountability

The contract was awarded by the Department of Veterans Affairs, indicating agency oversight. The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' clause suggests a structured procurement process, but further details on oversight mechanisms are not provided.

Related Government Programs

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

Risk Flags

Limited competition
Potential for higher costs due to source exclusion
Lack of detailed performance metrics in public data
Long contract duration without clear price adjustment mechanisms

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $5.4 million to UNITED PARCEL SERVICE CO.. NGDS SMALL PACKAGE DELIVERY SERVICES FOR VISN 15 FACILITIES

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 $5.4 million.

What is the period of performance?

Start: 2018-09-16. End: 2023-03-31.

What was the specific rationale for excluding other sources initially, and did this exclusion impact the final price?

The rationale for excluding other sources is not detailed in the provided data. Typically, such exclusions might stem from specific technical requirements, existing contracts, or unique service needs. This limitation on competition could potentially lead to a higher price than if a broader range of vendors had been considered, as it reduces the pressure to offer the most competitive rates.

How does the per-package cost compare to industry averages for similar delivery services, considering the volume and geographic scope?

Without specific per-package cost data or detailed volume metrics, a direct comparison to industry averages is not feasible. The total award value of $5.38 million over nearly five years suggests a significant volume of deliveries across VISN 15 facilities. A comprehensive analysis would require breaking down the total cost by the number of packages and average distance to benchmark against commercial rates.

What performance metrics are in place to ensure the effectiveness and reliability of UPS's delivery services under this contract?

The provided data does not specify the performance metrics or Service Level Agreements (SLAs) associated with this contract. Effective oversight would typically include tracking on-time delivery rates, package condition upon arrival, and responsiveness to issues. The Department of Veterans Affairs would be responsible for monitoring these metrics to ensure the contract's objectives are met and the services are reliable.

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: 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: $6,458,112

Exercised Options: $6,088,837

Current Obligation: $5,380,809

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HTC71117DC003

IDV Type: IDC

Timeline