VA Spends $35.2M on Mail Manifesting Services with FedEx Supply Chain
Contract Overview
Contract Amount: $35,236,214 ($35.2M)
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: $96.8K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: MAIL MANIFESTING SERVICES
Place of Performance
Location: LANCASTER, DALLAS County, TEXAS, 75134
State: Texas Government Spending
Plain-Language Summary
Department of Veterans Affairs obligated $35.2 million to FEDEX SUPPLY CHAIN DISTRIBUTION SYSTEM, INC. for work described as: MAIL MANIFESTING SERVICES Key points: 1. Significant contract value of $35.2 million for mail manifesting services. 2. FedEx Supply Chain Distribution System, Inc. is the sole awardee. 3. Contract awarded under full and open competition. 4. Services fall under 'All Other Business Support Services' NAICS code 561499.
Value Assessment
Rating: fair
The contract value of $35.2M for a 1-year period appears high for mail manifesting services. Benchmarking against similar contracts is needed to assess if this pricing is competitive.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the specific award mechanism (BPA CALL) warrants further review to ensure maximum price discovery.
Taxpayer Impact: The $35.2 million expenditure represents a substantial investment by taxpayers for mail manifesting services.
Public Impact
Taxpayers are funding a significant contract for essential mail processing support. The reliance on a single vendor, FedEx, raises questions about long-term cost-effectiveness and potential service disruptions. The effectiveness of the competition method in securing the best value for taxpayer dollars needs to be evaluated.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- High contract value for a seemingly standard service.
- Potential for vendor lock-in despite full and open competition.
- Lack of specific performance metrics provided.
Positive Signals
- Awarded under full and open competition.
- Firm Fixed Price contract type provides cost certainty.
Sector Analysis
The 'All Other Business Support Services' sector is broad. Spending benchmarks for mail manifesting services specifically are not readily available, making direct comparison difficult. The VA's significant investment suggests a critical need for these services.
Small Business Impact
No information is available regarding the participation of small businesses in this contract. Further investigation is needed to determine if small business goals were considered or met.
Oversight & Accountability
The contract was awarded via a BPA Call, which can streamline procurement but requires careful oversight to ensure fair pricing and competition. The Department of Veterans Affairs is responsible for monitoring performance and ensuring accountability.
Related Government Programs
- All Other Business Support Services
- Department of Veterans Affairs Contracting
- Department of Veterans Affairs Programs
Risk Flags
- High contract value.
- Potential lack of granular cost breakdown.
- Limited information on performance metrics.
- Sole awardee for a significant duration.
- Need for detailed price reasonableness justification.
Tags
all-other-business-support-services, department-of-veterans-affairs, tx, bpa-call, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Veterans Affairs awarded $35.2 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 $35.2 million.
What is the period of performance?
Start: 2020-10-01. End: 2021-09-30.
What is the specific scope of 'Mail Manifesting Services' and how does it differ from standard mail processing?
Mail manifesting services typically involve the automated preparation and documentation of mail for bulk postage discounts. This includes sorting, weighing, and generating manifests required by postal services. The VA's specific needs likely involve high volumes of outgoing mail, requiring specialized software and processes to achieve cost savings through postage optimization and compliance with postal regulations.
How was the $35.2 million price determined to be fair and reasonable under full and open competition?
The determination of fair and reasonable pricing typically involves comparing the proposed costs against historical data, market research, and other similar contract awards. For this contract, the agency likely evaluated FedEx's proposal against industry benchmarks and potentially other bids received during the full and open competition. The BPA Call mechanism may have pre-negotiated rates, but the specific pricing justification requires further agency documentation.
What are the key performance indicators (KPIs) for this contract, and how is FedEx's performance being measured?
Key performance indicators for mail manifesting services would likely include mail processing accuracy, on-time manifest generation, compliance with postal regulations, and cost savings achieved through postage optimization. The contract documents should specify these KPIs and the methods for measuring FedEx's performance. Regular performance reviews and reporting are crucial for ensuring the contractor meets expectations and delivers value.
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: $35,236,214
Exercised Options: $35,236,214
Current Obligation: $35,236,214
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
More Contracts from Fedex Supply Chain Distribution System, Inc.
- FOR Mail Manifesting Services for 7 Cmop Locations — $831.5M (Department of Veterans Affairs)
- Mail Manifesting Services — $83.1M (Department of Veterans Affairs)
- Mail Manifesting Services — $75.0M (Department of Veterans Affairs)
- Mail Manifesting Services — $71.6M (Department of Veterans Affairs)
- Mail Manifesting Services — $67.8M (Department of Veterans Affairs)
View all Fedex Supply Chain Distribution System, Inc. federal contracts →
Other Department of Veterans Affairs Contracts
- CCN Region 3 Express Report — $5.2B (Optum Public Sector Solutions, Inc.)
- Express Report for FY22 Region 2 — $5.1B (Optum Public Sector Solutions, Inc.)
- Fiscal Year 2022 Express Report for Region 1 — $4.2B (Optum Public Sector Solutions, Inc.)
- Express Report for the Patient Centered Community Care (PC3) Contract — $3.3B (Triwest Healthcare Alliance Corp)
- CCN Region Three FY21 Express Report — $3.1B (Optum Public Sector Solutions, Inc.)