VA Awards $1.49M UPS Delivery Contract for VISN 23, Full and Open Competition

Contract Overview

Contract Amount: $1,486,000 ($1.5M)

Contractor: United Parcel Service CO.

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-04-01

End Date: 2026-03-31

Contract Duration: 364 days

Daily Burn Rate: $4.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 11

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: UPS DELIVERY SERVICE FOR VISN 23

Place of Performance

Location: SAINT PAUL, DAKOTA County, MINNESOTA, 55121

State: Minnesota Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $1.5 million to UNITED PARCEL SERVICE CO. for work described as: UPS DELIVERY SERVICE FOR VISN 23 Key points: 1. Contract value of $1.49M for delivery services. 2. Utilizes full and open competition, indicating market availability. 3. Risk appears low due to established service provider and fixed pricing. 4. Sector is couriers and express delivery services, a common government need.

Value Assessment

Rating: good

The contract value of $1.49M for a 364-day period seems reasonable for express delivery services. Benchmarking against similar government contracts for 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 after exclusion of sources, suggesting a robust price discovery process. This method typically leads to competitive pricing.

Taxpayer Impact: The use of full and open competition is generally favorable for taxpayers as it aims to secure the best value.

Public Impact

Ensures timely delivery of critical items for Veterans Affairs VISN 23. Supports the operational needs of the Department of Veterans Affairs. Provides a reliable logistics solution for a significant geographic area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Positive Signals

Full and open competition utilized.
Firm fixed price contract type.
Clear service period and delivery dates.

Sector Analysis

The couriers and express delivery services sector is essential for government operations, facilitating the movement of goods and information. Spending in this sector is consistent across federal agencies.

Small Business Impact

The data does not indicate any specific provisions or set-asides for small businesses in this contract award.

Oversight & Accountability

The Department of Veterans Affairs is responsible for overseeing this contract to ensure timely and accurate delivery services as per the agreement.

Related Government Programs

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

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $1.5 million to UNITED PARCEL SERVICE CO.. UPS DELIVERY SERVICE FOR VISN 23

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 $1.5 million.

What is the period of performance?

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

What is the historical performance of UPS with the VA for similar services?

Information on UPS's historical performance with the VA for similar services is not provided in the data. A review of past performance records, including on-time delivery rates, customer satisfaction, and any past disputes or issues, would be beneficial for a comprehensive risk assessment.

Are there any specific service level agreements (SLAs) tied to this contract?

The provided data does not detail specific Service Level Agreements (SLAs) beyond the general description of 'UPS DELIVERY SERVICE'. Understanding the defined performance metrics, such as delivery timeframes, package handling standards, and penalties for non-compliance, is crucial for assessing contract effectiveness and accountability.

How does the per-mile or per-package cost compare to other federal contracts for similar delivery volumes?

A direct per-unit cost benchmark is not available without more granular data on package volume, weight, and delivery distances. Comparing this contract's overall value and duration to other federal delivery contracts of similar scope would be necessary to determine cost-effectiveness.

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: 11

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: $1,486,000

Exercised Options: $1,486,000

Current Obligation: $1,486,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HTC71123DC025

IDV Type: IDC

Timeline