VA Awards $37M FedEx Contract for Ground Delivery Services in Nevada
Contract Overview
Contract Amount: $37,000 ($37.0K)
Contractor: Federal Express Corporation
Awarding Agency: Department of Veterans Affairs
Start Date: 2026-09-15
End Date: 2027-09-14
Contract Duration: 364 days
Daily Burn Rate: $102/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: NGDS GROUND DELIVERY SERVICE - FEDEX
Place of Performance
Location: NORTH LAS VEGAS, CLARK County, NEVADA, 89086
State: Nevada Government Spending
Plain-Language Summary
Department of Veterans Affairs obligated $37,000 to FEDERAL EXPRESS CORPORATION for work described as: NGDS GROUND DELIVERY SERVICE - FEDEX Key points: 1. Contract awarded to FedEx for $37 million over one year. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract is for essential courier and express delivery services. 4. Potential risks include reliance on a single vendor for critical logistics.
Value Assessment
Rating: good
The contract value of $37 million for a one-year delivery service appears reasonable given the scale of operations for a federal agency like the VA. Benchmarking against similar federal contracts for express delivery 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 after exclusion of sources, indicating that multiple vendors were likely considered. This method generally promotes competitive pricing and ensures the government receives the best value.
Taxpayer Impact: The competitive nature of the award suggests that taxpayer funds are being used efficiently for essential delivery services.
Public Impact
Ensures timely delivery of medical supplies, equipment, and documents to VA facilities and beneficiaries. Supports the operational continuity of the Department of Veterans Affairs. Provides a critical link in the VA's supply chain and patient care infrastructure. Impacts veterans through reliable access to necessary services and resources.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Vendor lock-in risk if performance issues arise.
- Potential for price increases in future contract renewals.
- Dependence on FedEx's network stability and service quality.
Positive Signals
- Competitive award process.
- Clear contract duration and defined services.
- Fixed-price contract limits cost overruns.
Sector Analysis
The contract falls under the 'Couriers and Express Delivery Services' sector, a vital component of federal logistics. Spending in this area is consistent with the need for efficient movement of goods and information across government agencies.
Small Business Impact
The data indicates this contract was awarded to FedEx Corporation and does not specify any set-asides for small businesses. Therefore, small business participation appears limited in this specific award.
Oversight & Accountability
The contract is subject to standard federal procurement oversight. The VA's contracting office is responsible for ensuring compliance and performance. The fixed-price nature of the contract provides some cost control.
Related Government Programs
- Couriers and Express Delivery Services
- Department of Veterans Affairs Contracting
- Department of Veterans Affairs Programs
Risk Flags
- Sole-source vendor reliance for critical services.
- Potential for service disruptions impacting VA operations.
- Lack of explicit small business participation.
- Absence of detailed performance metrics in summary data.
- Future price escalation risk upon renewal.
Tags
couriers-and-express-delivery-services, department-of-veterans-affairs, nv, delivery-order, under-100k
Frequently Asked Questions
What is this federal contract paying for?
Department of Veterans Affairs awarded $37,000 to FEDERAL EXPRESS CORPORATION. NGDS GROUND DELIVERY SERVICE - FEDEX
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 $37,000.
What is the period of performance?
Start: 2026-09-15. End: 2027-09-14.
What is the historical spending by the VA on similar delivery services, and how does this award compare?
Historical spending data for VA's delivery services is not provided. However, a $37 million award for a one-year contract suggests a significant volume of shipments. Comparing this to previous years or similar agency contracts would reveal if this represents an increase or decrease in spending, and whether it aligns with market rates for comparable services.
What are the key performance indicators (KPIs) and service level agreements (SLAs) in this contract to ensure quality and timeliness?
The provided data does not detail specific KPIs or SLAs. However, for a contract of this nature, typical metrics would include on-time delivery rates, package condition upon arrival, tracking accuracy, and customer service responsiveness. The VA would likely have established these to ensure FedEx meets performance expectations and to hold them accountable.
Are there contingency plans or alternative vendors in place should FedEx experience significant service disruptions?
The data does not explicitly mention contingency plans or alternative vendors. Given the 'full and open competition' award, it's possible the VA evaluated FedEx's business continuity plans. However, reliance on a single provider for such a large contract inherently carries risk. The VA may have internal protocols or pre-negotiated options with other carriers for emergencies.
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: 1
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: $37,000
Exercised Options: $37,000
Current Obligation: $37,000
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HTC71123DC023
IDV Type: IDC
Timeline
Start Date: 2026-09-15
Current End Date: 2027-09-14
Potential End Date: 2027-09-14 00:00:00
Last Modified: 2026-04-02
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