VA Spends $37.4M on Mail Manifesting Services with FedEx Supply Chain
Contract Overview
Contract Amount: $37,445,207 ($37.4M)
Contractor: Fedex Supply Chain Distribution System, Inc.
Awarding Agency: Department of Veterans Affairs
Start Date: 2020-10-01
End Date: 2021-09-30
Contract Duration: 364 days
Daily Burn Rate: $102.9K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: MAIL MANIFESTING SERVICES
Place of Performance
Location: TUCSON, PIMA County, ARIZONA, 85706
State: Arizona Government Spending
Plain-Language Summary
Department of Veterans Affairs obligated $37.4 million to FEDEX SUPPLY CHAIN DISTRIBUTION SYSTEM, INC. for work described as: MAIL MANIFESTING SERVICES Key points: 1. Significant expenditure on essential mail manifesting services. 2. FedEx Supply Chain is the sole provider under this contract. 3. Potential risk associated with single-source reliance. 4. Spending falls within the broad 'Business Support Services' sector.
Value Assessment
Rating: fair
The $37.4M expenditure for mail manifesting services appears substantial. Benchmarking against similar contracts for comprehensive supply chain logistics is difficult without more granular data on service scope and volume.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded via a BPA Call under Full and Open Competition, suggesting an initial competitive process. However, the specific award mechanism might limit direct price discovery for this particular call.
Taxpayer Impact: Taxpayers are funding essential mail services, with the cost effectiveness dependent on the competitive landscape and service efficiency achieved.
Public Impact
Ensures efficient processing and tracking of mail for VA operations. Supports the logistical backbone of VA communications and medical supply distribution. Potential for cost savings through optimized mail handling and reduced errors.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Reliance on a single vendor for critical manifesting services.
- Limited transparency on per-unit cost efficiency.
- Potential for price increases in future contract renewals.
Positive Signals
- Established vendor with proven supply chain capabilities.
- Contract awarded under full and open competition initially.
- BPA Call mechanism can offer streamlined ordering.
Sector Analysis
This contract falls under 'All Other Business Support Services,' a broad category. Benchmarking requires comparing against other large-scale logistics and manifesting contracts, which can vary widely in scope and pricing.
Small Business Impact
No specific information is provided regarding small business participation in this contract. The prime contractor is a large corporation, suggesting limited direct subcontracting opportunities for small businesses in this specific award.
Oversight & Accountability
The Department of Veterans Affairs is responsible for overseeing this contract. Accountability relies on performance metrics and adherence to the BPA Call terms.
Related Government Programs
- All Other Business Support Services
- Department of Veterans Affairs Contracting
- Department of Veterans Affairs Programs
Risk Flags
- Vendor Lock-in
- Lack of Competition at Call Level
- Price Escalation Risk
- Performance Dependency
Tags
all-other-business-support-services, department-of-veterans-affairs, az, bpa-call, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Veterans Affairs awarded $37.4 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 $37.4 million.
What is the period of performance?
Start: 2020-10-01. End: 2021-09-30.
What is the specific volume of mail processed under this contract to justify the $37.4M expenditure?
The provided data does not specify the volume of mail processed. The $37.4M expenditure represents the total value of the BPA Call over its 364-day duration. A detailed analysis of mail volume, package types, and destinations would be necessary to accurately assess the per-unit cost and overall value for money.
What are the risks associated with relying solely on FedEx Supply Chain for mail manifesting services?
Sole reliance on FedEx Supply Chain presents risks such as potential service disruptions due to vendor-specific issues, limited leverage for price negotiation in the future, and a lack of competitive pressure to drive innovation or cost efficiencies. This dependency could impact the VA's operational continuity if the vendor fails to perform.
How effectively does this contract support the VA's mission compared to alternative solutions?
The contract effectively supports the VA's mission by ensuring reliable mail manifesting, crucial for communication and supply chain operations. However, its effectiveness relative to alternatives cannot be fully assessed without comparing its cost, efficiency, and service quality against other potential providers or in-house solutions.
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: $37,445,207
Exercised Options: $37,445,207
Current Obligation: $37,445,207
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Parent Contract
Parent Award PIID: 36C77020A0009
IDV Type: BPA
Timeline
Start Date: 2020-10-01
Current End Date: 2021-09-30
Potential End Date: 2025-06-30 00:00:00
Last Modified: 2025-10-21
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