VA Spends $42.6M on Mail Manifesting Services via FedEx, Raising Oversight Questions
Contract Overview
Contract Amount: $42,560,486 ($42.6M)
Contractor: Fedex Supply Chain Distribution System, Inc.
Awarding Agency: Department of Veterans Affairs
Start Date: 2021-10-01
End Date: 2022-06-30
Contract Duration: 272 days
Daily Burn Rate: $156.5K/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 $42.6 million to FEDEX SUPPLY CHAIN DISTRIBUTION SYSTEM, INC. for work described as: MAIL MANIFESTING SERVICES Key points: 1. Significant expenditure on a niche service, mail manifesting. 2. Solely awarded to FedEx Supply Chain Distribution System, Inc. 3. Lack of transparency in the award process warrants scrutiny. 4. Potential for better value through broader competition.
Value Assessment
Rating: questionable
The contract value of $42.6 million for mail manifesting services is substantial. Without comparable contract data or a clear justification for this specific vendor, assessing value for money is difficult. Benchmarking against similar services is needed.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under a BPA Call, suggesting it might be part of a larger existing agreement. However, the limited competition raises concerns about whether the VA explored all available options to secure the best pricing and terms.
Taxpayer Impact: Taxpayer funds are being spent on a single vendor for a critical service. The lack of robust competition could lead to inflated costs, diminishing the value for taxpayers.
Public Impact
Veterans' healthcare funding could be impacted by potentially inefficient spending. Reliance on a single provider for essential mail services creates a potential vulnerability. Lack of public detail on the contract's necessity and performance metrics.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition
- Lack of transparency
- High contract value for specialized service
Positive Signals
- Service provided by a known entity (FedEx)
Sector Analysis
The Business Support Services sector encompasses a wide range of activities. A $42.6 million contract for mail manifesting is a significant investment within this sector, particularly when awarded through limited competition.
Small Business Impact
The contract does not appear to have specific provisions for small business participation. This represents a missed opportunity to support small businesses in the logistics and business support services sector.
Oversight & Accountability
The award process, particularly the limited competition aspect, warrants further oversight. It is unclear if adequate justification was provided for not pursuing a broader solicitation to ensure competitive pricing and vendor diversity.
Related Government Programs
- All Other Business Support Services
- Department of Veterans Affairs Contracting
- Department of Veterans Affairs Programs
Risk Flags
- Limited competition raises concerns about price discovery.
- High contract value for a specialized service.
- Lack of transparency in award justification.
- Potential for missed small business opportunities.
- No clear indication of performance metrics.
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 $42.6 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 $42.6 million.
What is the period of performance?
Start: 2021-10-01. End: 2022-06-30.
What is the justification for using a limited competition award for such a significant mail manifesting contract?
The justification for limited competition is crucial for understanding why a full and open competition was not pursued. This could be due to specific requirements of the BPA, unique capabilities of FedEx, or urgency. Without this information, it's difficult to assess if the government received the best possible value or if alternative vendors could have offered comparable services at a better price point.
How does the per-unit cost of this contract compare to industry benchmarks for mail manifesting services?
Benchmarking the per-unit cost against industry standards is essential for evaluating the contract's value. If the cost is significantly higher than market rates, it suggests potential overspending or inefficient pricing. Conversely, if it aligns with or is below benchmarks, it might indicate a reasonable deal, though competition would still be ideal for confirmation.
What are the performance metrics and service level agreements (SLAs) associated with this contract?
Understanding the performance metrics and SLAs is key to assessing the effectiveness of the contract. These define the expected quality, timeliness, and reliability of the mail manifesting services. Without clear and measurable SLAs, it's challenging to determine if the VA is receiving the services it paid for and if FedEx is meeting its obligations.
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: $42,560,486
Exercised Options: $42,560,486
Current Obligation: $42,560,486
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: 36C77020A0009
IDV Type: BPA
Timeline
Start Date: 2021-10-01
Current End Date: 2022-06-30
Potential End Date: 2022-06-30 00:00:00
Last Modified: 2025-10-21
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