VA Awards $67.8M Contract for Mail Manifesting Services to FedEx Supply Chain

Contract Overview

Contract Amount: $67,760,383 ($67.8M)

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: $186.2K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: MAIL MANIFESTING SERVICES

Place of Performance

Location: HINES, COOK County, ILLINOIS, 60141

State: Illinois Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $67.8 million to FEDEX SUPPLY CHAIN DISTRIBUTION SYSTEM, INC. for work described as: MAIL MANIFESTING SERVICES Key points: 1. Significant contract value of $67.8 million over one year. 2. Awarded to a single, established provider, raising questions about competition. 3. Potential risk of overpayment due to limited competition. 4. Services fall under Business Support, a broad category.

Value Assessment

Rating: questionable

The contract value is substantial for business support services. Without a clear benchmark or comparison to similar contracts, it's difficult to definitively assess if the pricing is optimal. The firm fixed-price structure offers some cost certainty.

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 award type 'BPA CALL' suggests it might be a call against an existing Blanket Purchase Agreement, which could limit the pool of actual bidders.

Taxpayer Impact: Taxpayer funds are being used for essential business support services. The firm fixed-price contract aims to control costs, but the overall value suggests a significant expenditure.

Public Impact

Veterans will continue to receive essential mail manifesting services. The contract supports a major logistics provider, potentially impacting jobs. Government efficiency in mail processing is maintained through this service.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited visibility into the specific services provided under the BPA call.
Potential for price creep if the BPA was not competitively bid initially.

Positive Signals

Firm fixed-price contract provides cost predictability.
Awarded under full and open competition, suggesting an attempt at market fairness.

Sector Analysis

Mail manifesting services fall under the broad 'Business Support Services' sector. Spending in this area is crucial for operational efficiency in government agencies. Benchmarks for such services can vary widely based on volume and specific requirements.

Small Business Impact

The data does not indicate any specific set-aside for small businesses. The award to FedEx Supply Chain Distribution System, Inc. suggests a large prime contractor, with potential for subcontracting opportunities, but this is not explicitly stated.

Oversight & Accountability

The contract is managed by the Department of Veterans Affairs. Oversight would involve ensuring service delivery meets the terms of the BPA call and that pricing remains fair throughout the contract period.

Related Government Programs

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

Risk Flags

Potential lack of true competition if BPA was not widely bid.
Significant expenditure for a single year requires justification.
Limited transparency on specific service details within the BPA call.
No indication of small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $67.8 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 $67.8 million.

What is the period of performance?

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

What specific services are included in this mail manifesting contract, and how do they align with the VA's core mission?

This contract covers mail manifesting services, which are essential for efficient mail processing and logistics. While not directly patient care, these services support the administrative and operational functions of the VA, ensuring that communications and supplies are handled effectively. The specific details of the services would be outlined in the BPA call document.

Given the 'BPA CALL' award type, what was the original competition for the overarching BPA, and how does that impact the value of this specific call?

The 'BPA CALL' indicates this is a task order under a pre-existing Blanket Purchase Agreement (BPA). The value and fairness of this $67.8 million call are influenced by the initial competition for the BPA itself. If the BPA was competitively awarded, this call likely represents a fair price for the services. However, if the BPA had limited competition, this call might not reflect the best possible pricing.

How does the $67.8 million expenditure for mail manifesting services compare to industry benchmarks for similar government or private sector contracts?

Without specific details on the volume of mail, types of services, and geographic scope, a direct comparison to industry benchmarks is challenging. However, $67.8 million for a one-year contract for manifesting services is a significant investment. Further analysis would require understanding the scale of operations it supports within the VA to determine if it represents efficient spending.

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: $67,760,383

Exercised Options: $67,760,383

Current Obligation: $67,760,383

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 36C77020A0009

IDV Type: BPA

Timeline