VA awards $29.3M contract for mail manifesting services to FedEx Supply Chain
Contract Overview
Contract Amount: $29,309,300 ($29.3M)
Contractor: Fedex Supply Chain Distribution System, Inc.
Awarding Agency: Department of Veterans Affairs
Start Date: 2020-09-16
End Date: 2021-09-30
Contract Duration: 379 days
Daily Burn Rate: $77.3K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: MAIL MANIFESTING SERVICES
Place of Performance
Location: LEAVENWORTH, LEAVENWORTH County, KANSAS, 66048
State: Kansas Government Spending
Plain-Language Summary
Department of Veterans Affairs obligated $29.3 million to FEDEX SUPPLY CHAIN DISTRIBUTION SYSTEM, INC. for work described as: MAIL MANIFESTING SERVICES Key points: 1. Contract awarded for mail manifesting services, a critical operational function. 2. FedEx Supply Chain Distribution System, Inc. is the sole awardee. 3. The contract value is $29.3 million over 379 days. 4. The NAICS code 561499 indicates 'All Other Business Support Services'.
Value Assessment
Rating: fair
The contract uses a Firm Fixed Price (FFP) type, which is standard for services. Without specific benchmarks for mail manifesting services, a direct pricing assessment is difficult, but the value suggests a significant operational scale.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under Full and Open Competition, indicating that multiple vendors had the opportunity to bid. The award method was a BPA Call, suggesting it was a call-off from an existing Blanket Purchase Agreement.
Taxpayer Impact: The use of full and open competition aims to ensure taxpayer funds are used efficiently by fostering a competitive environment for pricing.
Public Impact
Ensures efficient mail processing for VA operations. Supports the Department of Veterans Affairs' mission delivery. Potential for cost savings through optimized mail logistics.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific performance metrics provided.
- Potential for vendor lock-in if not managed carefully.
Positive Signals
- Awarded under full and open competition.
- Firm Fixed Price contract type provides cost certainty.
Sector Analysis
Mail manifesting services fall under business support services, often involving logistics and technology to track and manage mail. Spending in this sector can vary widely based on agency size and mail volume.
Small Business Impact
The data does not indicate any specific set-aside for small businesses, suggesting this contract was awarded based on the best value to the government without small business preferences.
Oversight & Accountability
The award under a BPA Call implies that the underlying BPA likely underwent a competitive process. Further oversight would involve monitoring contract performance and adherence to terms.
Related Government Programs
- All Other Business Support Services
- Department of Veterans Affairs Contracting
- Department of Veterans Affairs Programs
Risk Flags
- Sole awardee for a critical service.
- Contract duration of over a year.
- Lack of specific performance metrics in provided data.
- Potential for price increases upon renewal.
Tags
all-other-business-support-services, department-of-veterans-affairs, ks, bpa-call, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Veterans Affairs awarded $29.3 million to FEDEX SUPPLY CHAIN DISTRIBUTION SYSTEM, INC.. MAIL MANIFESTING SERVICES
Who is the contractor on this award?
The obligated recipient is FEDEX SUPPLY CHAIN DISTRIBUTION SYSTEM, INC..
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 $29.3 million.
What is the period of performance?
Start: 2020-09-16. End: 2021-09-30.
What is the benchmark cost for mail manifesting services for an organization of the VA's size?
Determining a precise benchmark for mail manifesting services is challenging without detailed service level agreements and volume data. However, industry averages for similar large-scale logistics and business support services can range significantly. Factors like package volume, sorting complexity, and required tracking capabilities heavily influence per-unit costs. A comparative analysis against other government agencies or large private sector entities with similar mail operations would be necessary for a robust benchmark.
What are the risks associated with relying on a single vendor for critical mail manifesting services?
Relying on a single vendor, even one as established as FedEx, carries inherent risks. These include potential disruptions due to unforeseen vendor issues (e.g., labor disputes, system outages, financial instability), limited leverage for renegotiating terms or pricing in the future, and a reduced incentive for the vendor to innovate or offer superior service if competition is absent. Contingency planning and robust performance monitoring are crucial to mitigate these risks.
How effectively does this contract support the VA's overall mission delivery?
Efficient mail manifesting is crucial for timely communication and delivery of essential documents and supplies to veterans and VA personnel. By outsourcing this function to a specialized provider like FedEx, the VA can potentially improve efficiency, reduce internal operational overhead, and ensure a higher degree of accuracy and tracking. This allows the VA to focus its resources on core healthcare and benefits delivery, indirectly supporting its mission.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Business Support Services › All Other Business Support Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › ADMINISTRATIVE SUPPORT SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Fedex Corp
Address: 700 CRANBERRY WOODS DR, CRANBERRY TOWNSHIP, PA, 16066
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $29,309,300
Exercised Options: $29,309,300
Current Obligation: $29,309,300
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Parent Contract
Parent Award PIID: 36C77020A0009
IDV Type: BPA
Timeline
Start Date: 2020-09-16
Current End Date: 2021-09-30
Potential End Date: 2025-06-30 00:00:00
Last Modified: 2025-10-21
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