VA Awards $42.6M Contract for Mail Manifesting Services to FedEx Supply Chain

Contract Overview

Contract Amount: $42,603,809 ($42.6M)

Contractor: Fedex Supply Chain Distribution System, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-10-01

End Date: 2025-09-30

Contract Duration: 364 days

Daily Burn Rate: $117.0K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: MAIL MANIFESTING SERVICES

Place of Performance

Location: SHAWNEE, JOHNSON County, KANSAS, 66227

State: Kansas 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 contract value of $42.6 million over one year. 2. FedEx Supply Chain Distribution System, Inc. is the sole awardee. 3. The contract falls under the 'All Other Business Support Services' NAICS code. 4. This award represents a substantial investment in logistics and mail management for the VA.

Value Assessment

Rating: good

The contract's firm fixed price structure provides cost certainty. Benchmarking against similar large-scale logistics contracts suggests the pricing is competitive for the scope of services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded using full and open competition, indicating a robust price discovery process. The BPA Call award method suggests it was likely a competitive call against an existing agreement.

Taxpayer Impact: Taxpayers benefit from a competitive bidding process that aims to secure the best value for essential mail manifesting services.

Public Impact

Ensures efficient processing and delivery of mail for VA operations nationwide. Supports critical VA functions by maintaining reliable communication channels. Potential for improved cost savings and operational efficiency in mail handling.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Reliance on a single vendor for a critical service.
Potential for price increases in future contract renewals.
Dependence on FedEx's infrastructure and service levels.

Positive Signals

Awarded through full and open competition.
Firm fixed price contract provides budget predictability.
Supports a large government agency's operational needs.

Sector Analysis

This contract falls within the Business Support Services sector, specifically focusing on logistics and mail management. Spending in this area is crucial for government agencies to maintain efficient operations and communication.

Small Business Impact

The data does not indicate any specific set-aside for small businesses. The award to a large corporation like FedEx suggests that small business participation may be limited in this particular contract.

Oversight & Accountability

The award was made under a BPA Call, implying oversight through the parent BPA. Further oversight would involve monitoring performance metrics and adherence to contract terms by the VA.

Related Government Programs

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

Risk Flags

Vendor Lock-in
Service Disruption Risk
Price Escalation
Limited Small Business Participation

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: 2024-10-01. End: 2025-09-30.

What specific performance metrics are being tracked to ensure the value of this contract?

The contract likely includes performance standards related to mail processing times, accuracy, tracking capabilities, and reporting. The VA's contract management team would monitor these metrics to ensure FedEx meets its obligations and provides the expected value. Regular performance reviews and service level agreement adherence are key to accountability.

What are the potential risks associated with relying on FedEx for this critical service?

Key risks include service disruptions due to FedEx's operational issues, potential price escalations in future contract periods, and a lack of immediate alternative vendors if performance degrades. The VA must maintain strong contract management and monitor market conditions to mitigate these risks.

How does this contract contribute to the VA's overall mission effectiveness?

Efficient mail manifesting is fundamental for the VA's communication with veterans, processing of claims, and distribution of information. This contract ensures that these essential logistical functions are handled reliably, supporting the VA's ability to deliver services effectively and maintain operational continuity.

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: $42,603,809

Exercised Options: $42,603,809

Current Obligation: $42,603,809

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 36C77020A0009

IDV Type: BPA

Timeline