VA awards $48.5M contract for package delivery services to United Parcel Service, ensuring nationwide logistics

Contract Overview

Contract Amount: $48,477 ($48.5K)

Contractor: United Parcel Service CO.

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-10-01

End Date: 2025-09-30

Contract Duration: 364 days

Daily Burn Rate: $133/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Transportation

Official Description: PACKAGE DELIVERY SERVICES

Place of Performance

Location: SAN ANTONIO, BEXAR County, TEXAS, 78299

State: Texas Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $48,477.35 to UNITED PARCEL SERVICE CO. for work described as: PACKAGE DELIVERY SERVICES Key points: 1. The contract value of $48.5 million over one year highlights significant spending in essential logistics. 2. United Parcel Service is the sole awardee, indicating a strong incumbent position or specific capability. 3. The primary risk lies in potential service disruptions or price increases if competition is limited in the future. 4. This spending falls within the broad 'Transportation' sector, crucial for government operations.

Value Assessment

Rating: good

The $48.5 million award for a one-year period appears reasonable given the scope of nationwide package delivery services. Benchmarking against similar large-scale logistics contracts would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition after exclusion of sources, suggesting a competitive bidding process. This method generally promotes price discovery and ensures fair market value.

Taxpayer Impact: The competitive award process aims to secure cost-effective delivery services, minimizing unnecessary taxpayer expense for essential government functions.

Public Impact

Ensures timely delivery of medical supplies, equipment, and administrative documents across the VA system. Supports critical healthcare operations by maintaining the flow of necessary goods nationwide. Provides reliable transportation for veterans' benefits-related mail and correspondence.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price increases in future contract renewals due to limited incumbent competition.
Dependence on a single provider could lead to service vulnerabilities.

Positive Signals

Awarded through full and open competition, maximizing potential for competitive pricing.
Contract duration of one year allows for regular reassessment of market conditions.
Firm fixed price contract provides cost certainty for the VA.

Sector Analysis

This contract falls under the Transportation sector, specifically couriers and express delivery services. Government spending in this area is substantial, supporting the movement of goods and information critical for agency operations.

Small Business Impact

The data indicates this contract was not set aside for small businesses and was awarded to a large corporation. There is no direct indication of small business participation in this specific award.

Oversight & Accountability

The award was made by the Department of Veterans Affairs, which has established procurement oversight processes. The use of full and open competition suggests adherence to standard accountability measures.

Related Government Programs

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

Risk Flags

Limited future competition potential
Dependence on a single large provider
Potential for price increases upon renewal
Service disruptions impacting critical VA operations

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $48,477.35 to UNITED PARCEL SERVICE CO.. PACKAGE DELIVERY SERVICES

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 $48,477.35.

What is the period of performance?

Start: 2024-10-01. End: 2025-09-30.

What is the historical pricing trend for similar VA package delivery services?

Analyzing historical pricing data for comparable VA package delivery contracts is crucial. This would involve comparing the current $48.5 million award against previous contract values, adjusting for inflation and service scope changes. Understanding this trend helps determine if the current price represents a fair market value or indicates potential cost escalation over time.

What are the specific performance metrics and service level agreements (SLAs) tied to this contract?

The contract's effectiveness hinges on clearly defined performance metrics and SLAs. These should include delivery timeframes, package handling standards, tracking accuracy, and customer service responsiveness. Robust monitoring of these metrics by the VA is essential to ensure service quality and hold the contractor accountable for meeting obligations.

Are there alternative delivery service providers that could be leveraged for future competition?

Assessing the landscape of alternative delivery service providers is vital for future competition. This involves identifying other capable companies, including regional carriers or specialized logistics firms, that could offer competitive bids. Expanding the pool of potential bidders can drive down costs and enhance service options for the VA.

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: $48,477

Exercised Options: $48,477

Current Obligation: $48,477

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HTC71123DC025

IDV Type: IDC

Timeline