VA Awards $17.8M Delivery Order to Federal Express for Courier Services
Contract Overview
Contract Amount: $17,773,485 ($17.8M)
Contractor: Federal Express Corporation
Awarding Agency: Department of Veterans Affairs
Start Date: 2024-10-01
End Date: 2025-09-30
Contract Duration: 364 days
Daily Burn Rate: $48.8K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: NGDS SHIPPING
Place of Performance
Location: LADSON, BERKELEY County, SOUTH CAROLINA, 29456
Plain-Language Summary
Department of Veterans Affairs obligated $17.8 million to FEDERAL EXPRESS CORPORATION for work described as: NGDS SHIPPING Key points: 1. Significant contract value of $17.8 million for essential delivery services. 2. Federal Express Corporation is a major player in the courier and express delivery market. 3. Potential risk associated with reliance on a single large provider for critical logistics. 4. Spending falls within the IT/Services sector, specifically couriers and express delivery.
Value Assessment
Rating: good
The contract value of $17.8 million for a one-year period appears reasonable given the scale of services typically provided by Federal Express. Benchmarking against similar large-scale delivery contracts would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition after exclusion of sources, indicating a competitive bidding process. This method generally promotes price discovery and ensures fair market value.
Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for necessary courier and delivery services.
Public Impact
Ensures timely delivery of critical medical supplies and documents for veterans. Supports the operational efficiency of the Department of Veterans Affairs nationwide. Provides reliable logistics for a government agency with significant national reach.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for price increases in future contract renewals.
- Dependence on a single vendor could impact service continuity if issues arise.
Positive Signals
- Awarded through full and open competition.
- Utilizes a firm fixed-price contract type, providing cost certainty.
- Service period aligns with the fiscal year, facilitating budget management.
Sector Analysis
The Department of Veterans Affairs relies heavily on courier and express delivery services for its vast operations. This spending aligns with typical government expenditures in the logistics and transportation sector, which are essential for agency functionality.
Small Business Impact
This contract was awarded to Federal Express Corporation, a large business. There is no indication of specific provisions or set-asides for small businesses within this particular delivery order.
Oversight & Accountability
The award was made under full and open competition, suggesting a structured procurement process. Ongoing oversight by the Department of Veterans Affairs will be crucial to ensure service delivery meets contractual requirements and value.
Related Government Programs
- Couriers and Express Delivery Services
- Department of Veterans Affairs Contracting
- Department of Veterans Affairs Programs
Risk Flags
- Reliance on a single large vendor.
- Potential for price escalation in future renewals.
- Lack of small business participation noted.
- Service continuity risk if vendor faces operational issues.
Tags
couriers-and-express-delivery-services, department-of-veterans-affairs, sc, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Veterans Affairs awarded $17.8 million to FEDERAL EXPRESS CORPORATION. NGDS SHIPPING
Who is the contractor on this award?
The obligated recipient is FEDERAL EXPRESS CORPORATION.
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 $17.8 million.
What is the period of performance?
Start: 2024-10-01. End: 2025-09-30.
What is the historical performance of Federal Express Corporation with the VA on similar contracts?
Historical performance data for Federal Express Corporation with the VA on similar contracts would be crucial for a comprehensive value assessment. Reviewing past delivery success rates, response times, and any documented issues or disputes would provide insight into their reliability and efficiency. This information helps determine if the current award reflects a continuation of good service or a potential risk.
How does the per-unit cost of this contract compare to industry benchmarks for similar delivery volumes and service levels?
A detailed per-unit cost analysis against industry benchmarks is essential for evaluating the value for money. This would involve breaking down the total contract value by estimated number of deliveries, weight, distance, and service speed. Comparing these metrics to rates offered by other major carriers for comparable government or commercial services would highlight potential overpricing or cost savings.
What are the contingency plans in place if Federal Express Corporation experiences service disruptions or fails to meet performance metrics?
Contingency planning is vital for ensuring continuity of essential VA services. The contract should outline clear performance metrics and remedies for non-performance. Understanding the VA's backup plans, such as engaging alternative carriers or having pre-negotiated surge capacity agreements, is critical to assessing the risk associated with potential service disruptions and their impact on veterans.
Industry Classification
NAICS: Transportation and Warehousing › Couriers and Express Delivery Services › Couriers and Express Delivery Services
Product/Service Code: TRANSPORT, TRAVEL, RELOCATION › TRANSPORTATION OF THINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 4
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Fedex Corp
Address: 2003 CORPORATE PLZ, MEMPHIS, TN, 38132
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $17,773,485
Exercised Options: $17,773,485
Current Obligation: $17,773,485
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HTC71123DC023
IDV Type: IDC
Timeline
Start Date: 2024-10-01
Current End Date: 2025-09-30
Potential End Date: 2025-09-30 00:00:00
Last Modified: 2026-02-02
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