VA awards $62.7M contract for Mail Manifesting Services to FedEx Supply Chain Distribution System
Contract Overview
Contract Amount: $62,770,861 ($62.8M)
Contractor: Fedex Supply Chain Distribution System, Inc.
Awarding Agency: Department of Veterans Affairs
Start Date: 2024-10-01
End Date: 2025-11-18
Contract Duration: 413 days
Daily Burn Rate: $152.0K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: MAIL MANIFESTING SERVICES
Place of Performance
Location: LANCASTER, DALLAS County, TEXAS, 75134
State: Texas Government Spending
Plain-Language Summary
Department of Veterans Affairs obligated $62.8 million to FEDEX SUPPLY CHAIN DISTRIBUTION SYSTEM, INC. for work described as: MAIL MANIFESTING SERVICES Key points: 1. Significant contract value of $62.7 million over 13 months. 2. Sole provider identified as FedEx Supply Chain Distribution System, Inc. 3. Contract type is Firm Fixed Price, indicating predictable costs. 4. Service falls under 'All Other Business Support Services' NAICS code 561499.
Value Assessment
Rating: fair
The contract is a BPA Call, suggesting it leverages an existing agreement. Pricing is fixed, but without a benchmark or comparison to similar contracts, assessing value is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically promotes competitive pricing. However, the specific award mechanism (BPA Call) might influence the price discovery process.
Taxpayer Impact: Taxpayer funds are being used for essential mail manifesting services, with the fixed price aiming to control costs.
Public Impact
Ensures efficient mail processing for the Department of Veterans Affairs. Supports the logistical operations of a major federal agency. Potential impact on mail delivery timelines and costs for VA beneficiaries.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of detailed cost breakdown for the $62.7M award.
- Limited information on performance metrics and service level agreements.
- Potential for price increases in future contract renewals.
Positive Signals
- Awarded under full and open competition.
- Firm Fixed Price contract type provides cost certainty.
- Leverages an existing BPA Call, potentially streamlining acquisition.
Sector Analysis
This contract falls within the business support services sector, specifically mail manifesting. Spending in this area is crucial for government operations but often overlooked, making benchmarks hard to establish.
Small Business Impact
No specific information is provided regarding small business participation in this contract. The prime contractor is a large corporation, suggesting subcontracting opportunities may exist but are not detailed.
Oversight & Accountability
The contract is a BPA Call, which implies it is part of a larger, pre-competed agreement. Oversight would likely focus on adherence to the terms of the BPA and the specific call order.
Related Government Programs
- All Other Business Support Services
- Department of Veterans Affairs Contracting
- Department of Veterans Affairs Programs
Risk Flags
- Potential for vendor lock-in due to sole provider status.
- Lack of transparency in cost breakdown.
- Dependence on a single contractor for critical logistics.
- Limited information on performance metrics and oversight.
Tags
all-other-business-support-services, department-of-veterans-affairs, tx, bpa-call, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Veterans Affairs awarded $62.8 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 $62.8 million.
What is the period of performance?
Start: 2024-10-01. End: 2025-11-18.
What is the historical cost and performance data for mail manifesting services to determine if $62.7M is a competitive price?
Without historical cost data or comparable contract information, it's challenging to definitively assess the competitiveness of the $62.7 million award. Benchmarking against industry standards for similar volume and service scope would be necessary. The firm fixed price offers cost certainty but doesn't inherently guarantee value for money without further analysis of the underlying service costs and market rates.
What are the specific risks associated with relying on a single provider, FedEx, for this critical service?
The primary risk is the potential for service disruptions if FedEx faces operational issues, which could impact VA's mail processing and communication. Dependence on a single provider also reduces leverage for negotiating future terms or addressing performance deficiencies. Mitigation strategies might include robust service level agreements and contingency planning.
How effectively does this contract support the VA's mission and operational efficiency compared to alternative solutions?
The contract's effectiveness hinges on its ability to streamline mail manifesting, reduce errors, and ensure timely delivery, thereby supporting VA operations. If FedEx's system offers significant efficiencies over previous methods or internal solutions, it contributes positively. Measuring this requires tracking key performance indicators related to speed, accuracy, and cost savings.
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: $62,770,861
Exercised Options: $62,770,861
Current Obligation: $62,770,861
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: 36C77020A0009
IDV Type: BPA
Timeline
Start Date: 2024-10-01
Current End Date: 2025-11-18
Potential End Date: 2025-11-18 00:00:00
Last Modified: 2025-11-19
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