VA Spends $31.3M on Mail Manifesting Services via FedEx Contract

Contract Overview

Contract Amount: $31,317,397 ($31.3M)

Contractor: Fedex Supply Chain Distribution System, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2022-10-01

End Date: 2023-09-30

Contract Duration: 364 days

Daily Burn Rate: $86.0K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: MAIL MANIFESTING SERVICES

Place of Performance

Location: HINES, COOK County, ILLINOIS, 60141

State: Illinois Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $31.3 million to FEDEX SUPPLY CHAIN DISTRIBUTION SYSTEM, INC. for work described as: MAIL MANIFESTING SERVICES Key points: 1. Significant contract value of $31.3 million for mail manifesting. 2. Competition was full and open, indicating a competitive bidding process. 3. Risk appears moderate given the firm fixed-price contract type. 4. Sector is Business Support Services, a common area for government contracting.

Value Assessment

Rating: good

The $31.3 million contract value for mail manifesting services appears reasonable given the duration and scope. Benchmarking against similar large-scale logistics and business support contracts would provide further context.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a robust price discovery process. This method typically leads to more competitive pricing for the government.

Taxpayer Impact: The use of a competitive process likely ensured taxpayers received fair value for the mail manifesting services.

Public Impact

Ensures efficient processing and tracking of mail for VA operations. Supports the delivery of critical services to veterans by managing mail flow. Leverages private sector expertise for specialized business support functions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if services are highly specialized.
Reliance on a single vendor for critical mail operations.

Positive Signals

Full and open competition promotes cost-effectiveness.
Firm fixed-price contract provides budget certainty.

Sector Analysis

This contract falls within the Business Support Services sector, which encompasses a wide range of services essential for government operations. Spending in this area is common, with benchmarks varying widely based on the specific service provided.

Small Business Impact

The data indicates this contract was not set aside for small businesses, suggesting it was awarded to a larger entity capable of handling the scale of services required.

Oversight & Accountability

The contract was awarded via a BPA Call, which is a mechanism for streamlining procurement. Oversight would focus on performance metrics and adherence to contract terms.

Related Government Programs

All Other Business Support Services
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

High contract value
Potential for service disruption
Vendor lock-in risk
Reliance on a single provider

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $31.3 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 $31.3 million.

What is the period of performance?

Start: 2022-10-01. End: 2023-09-30.

What specific mail manifesting services are included in this contract?

The contract likely covers a range of services such as mail sorting, tracking, labeling, postage application, and potentially specialized handling for different types of mail. The exact scope would be detailed in the BPA Call and underlying BPA agreement, outlining the specific requirements the VA needs from FedEx for its mail operations.

What are the key performance indicators (KPIs) for this contract?

Key performance indicators would likely focus on mail processing accuracy, on-time delivery rates, tracking completeness, and cost efficiency. The VA would monitor these KPIs to ensure FedEx is meeting the service level agreements established in the contract, ensuring operational effectiveness.

Are there any potential risks associated with relying on FedEx for this service?

Potential risks include service disruptions due to FedEx operational issues, price increases upon contract renewal if competition is limited then, and data security concerns related to mail manifest information. Mitigation strategies would involve robust contract management and contingency planning.

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: 100 PAPERCRAFT PARK, PITTSBURGH, PA, 15238

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $71,276,517

Exercised Options: $71,276,517

Current Obligation: $31,317,397

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 36C77020A0009

IDV Type: BPA

Timeline