VA Spends $71.6M on Mail Manifesting Services via FedEx Supply Chain Distribution System
Contract Overview
Contract Amount: $71,581,306 ($71.6M)
Contractor: Fedex Supply Chain Distribution System, Inc.
Awarding Agency: Department of Veterans Affairs
Start Date: 2023-10-01
End Date: 2024-09-30
Contract Duration: 365 days
Daily Burn Rate: $196.1K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: MAIL MANIFESTING SERVICES
Place of Performance
Location: LADSON, BERKELEY County, SOUTH CAROLINA, 29456
Plain-Language Summary
Department of Veterans Affairs obligated $71.6 million to FEDEX SUPPLY CHAIN DISTRIBUTION SYSTEM, INC. for work described as: MAIL MANIFESTING SERVICES Key points: 1. Significant contract value of $71.6 million for mail manifesting. 2. Sole provider identified as FedEx Supply Chain Distribution System, Inc. 3. Contract awarded by the Department of Veterans Affairs (VA). 4. Service category is 'All Other Business Support Services' (NAICS 561499). 5. Contract duration is one year, from October 1, 2023, to September 30, 2024.
Value Assessment
Rating: fair
The contract value of $71.6 million for mail manifesting services is substantial. Benchmarking against similar contracts for business support services is difficult without more specific data on the scope and volume of services provided by FedEx.
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 investigation to ensure price discovery was maximized.
Taxpayer Impact: Taxpayer funds are being used for this contract. The effectiveness of the competition in securing the best value for taxpayers is a key consideration.
Public Impact
Ensures efficient mail processing for VA operations. Supports the delivery of essential services to veterans. Relies on a single vendor for critical logistics. Potential for cost savings through optimized mail handling.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Reliance on a single vendor for a critical service.
- Lack of specific performance metrics in provided data.
- Potential for price increases in future contract renewals.
Positive Signals
- Awarded through full and open competition.
- Supports a vital government agency (VA).
- Firm fixed price contract provides cost certainty.
Sector Analysis
The 'All Other Business Support Services' sector is broad, encompassing various administrative and operational support functions. Benchmarking this specific mail manifesting service against industry standards requires detailed analysis of service volume and complexity.
Small Business Impact
The provided data does not indicate any specific set-asides for small businesses. Further review would be needed to determine if small businesses had an opportunity to participate in this contract.
Oversight & Accountability
The Department of Veterans Affairs is responsible for overseeing this contract. The use of a BPA Call suggests a pre-negotiated agreement, and oversight would focus on adherence to BPA terms and call order requirements.
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 vendor lock-in.
- Lack of detailed performance metrics.
- Limited insight into competitive bidding details.
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 $71.6 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 $71.6 million.
What is the period of performance?
Start: 2023-10-01. End: 2024-09-30.
What is the specific volume and type of mail being manifested under this contract to justify the $71.6 million expenditure?
The provided data lacks specifics on mail volume and type. Understanding these details is crucial for a thorough value assessment. Mail manifesting services can range from simple sorting to complex tracking and reporting, with costs varying significantly based on these factors. A detailed breakdown would allow for a more accurate comparison to industry benchmarks and an evaluation of cost-effectiveness.
What are the key performance indicators (KPIs) and service level agreements (SLAs) in place to ensure the effectiveness and efficiency of FedEx's mail manifesting services?
The provided data does not specify the KPIs or SLAs for this contract. Effective oversight requires clearly defined metrics for delivery times, accuracy, tracking capabilities, and customer service. Without these, it is challenging to assess whether the VA is receiving optimal service and value for the $71.6 million investment. These should be detailed in the contract's statement of work.
Given the 'full and open competition' award, what was the competitive landscape, and were there other bidders offering comparable services at potentially lower costs?
While the award states 'full and open competition,' the specifics of the bidding process and the number of competing offers are not detailed. Understanding the competitive landscape is vital to confirm that the chosen solution represents the best value. Further inquiry into the solicitation documents and bid analysis would reveal if alternative proposals were considered and why FedEx was selected.
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: $71,581,306
Exercised Options: $71,581,306
Current Obligation: $71,581,306
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: 36C77020A0009
IDV Type: BPA
Timeline
Start Date: 2023-10-01
Current End Date: 2024-09-30
Potential End Date: 2024-09-30 00:00:00
Last Modified: 2025-10-21
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