VA Spends $55.9M on Mail Manifesting Services via FedEx Contract
Contract Overview
Contract Amount: $55,926,570 ($55.9M)
Contractor: Fedex Supply Chain Distribution System, Inc.
Awarding Agency: Department of Veterans Affairs
Start Date: 2022-10-01
End Date: 2023-10-30
Contract Duration: 394 days
Daily Burn Rate: $141.9K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: MAIL MANIFESTING SERVICES
Place of Performance
Location: NORTH CHARLESTON, CHARLESTON County, SOUTH CAROLINA, 29405
Plain-Language Summary
Department of Veterans Affairs obligated $55.9 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 identified as the sole provider under this contract. 3. Potential for cost savings through competitive bidding. 4. Services fall under 'All Other Business Support Services' sector.
Value Assessment
Rating: fair
The contract value of $55.9M for mail manifesting services appears high given the nature of the service. Benchmarking against similar contracts for business support services is recommended to assess pricing reasonableness.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which is positive for price discovery. However, the specific award mechanism (BPA Call) warrants further review to ensure maximum competition was achieved.
Taxpayer Impact: Taxpayer funds are being used for this contract. Ensuring competitive pricing and efficient service delivery is crucial for maximizing value for taxpayers.
Public Impact
Ensures efficient processing and delivery of mail for VA operations. Supports critical communication channels for veterans' services. Potential impact on mail delivery timelines and costs for VA.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific per-unit cost data.
- Potential for vendor lock-in with specific service providers.
- Limited transparency on the competitive process for the BPA Call.
Positive Signals
- Contract awarded under full and open competition.
- Services are essential for VA operations.
- Firm fixed price contract provides cost certainty.
Sector Analysis
Mail manifesting services fall under the broad 'Business Support Services' sector. Spending benchmarks for this category are difficult to establish due to service variability, but significant contracts often involve extensive logistics and technology integration.
Small Business Impact
No specific information is provided regarding small business participation in this contract. Further analysis would be needed to determine if small businesses had an opportunity to compete or participate as subcontractors.
Oversight & Accountability
The contract was awarded by the Department of Veterans Affairs. Oversight should focus on performance metrics, adherence to contract terms, and ongoing price reasonableness assessments.
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 limited competition despite 'full and open' award.
- Lack of detailed cost breakdown.
- Service category is broad, making direct comparison difficult.
Tags
all-other-business-support-services, department-of-veterans-affairs, sc, bpa-call, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Veterans Affairs awarded $55.9 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 $55.9 million.
What is the period of performance?
Start: 2022-10-01. End: 2023-10-30.
What is the specific value proposition of using FedEx for mail manifesting services compared to other potential providers or in-house solutions?
The value proposition likely centers on FedEx's established logistics network, technological capabilities for tracking and manifesting, and potential economies of scale. However, without detailed cost-benefit analysis or comparison data, it's difficult to definitively assess if this offers superior value over alternative solutions or if the current pricing reflects optimal market rates.
What are the primary risks associated with this contract, and how are they being mitigated?
Key risks include potential overpayment due to lack of granular cost data, over-reliance on a single vendor (FedEx), and potential service disruptions. Mitigation strategies should involve rigorous performance monitoring, periodic market research to ensure continued competitiveness, and clear service level agreements with defined penalties for non-performance.
How effectively does this contract support the VA's mission and ensure efficient use of taxpayer funds?
The contract is essential for the VA's operational efficiency by ensuring mail is processed and delivered effectively. Its effectiveness in terms of taxpayer funds hinges on whether the $55.9M represents a competitive market price. Continuous oversight and comparison with industry benchmarks are necessary to confirm efficient fund utilization.
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: $55,926,570
Exercised Options: $55,926,570
Current Obligation: $55,926,570
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: 36C77020A0009
IDV Type: BPA
Timeline
Start Date: 2022-10-01
Current End Date: 2023-10-30
Potential End Date: 2023-10-30 00:00:00
Last Modified: 2025-10-21
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