VA awards $83.1M contract for Mail Manifesting Services to FedEx Supply Chain Distribution System
Contract Overview
Contract Amount: $83,111,542 ($83.1M)
Contractor: Fedex Supply Chain Distribution System, Inc.
Awarding Agency: Department of Veterans Affairs
Start Date: 2024-10-01
End Date: 2025-10-29
Contract Duration: 393 days
Daily Burn Rate: $211.5K/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 $83.1 million to FEDEX SUPPLY CHAIN DISTRIBUTION SYSTEM, INC. for work described as: MAIL MANIFESTING SERVICES Key points: 1. Contract awarded to a single, established provider. 2. Firm Fixed Price contract type aims to control costs. 3. Potential for higher costs due to limited competition. 4. Services fall under 'All Other Business Support Services' NAICS code.
Value Assessment
Rating: fair
The contract value of $83.1M over approximately 13 months suggests a significant investment. Benchmarking against similar mail manifesting services is difficult without more granular data on service scope and volume.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. However, the awardee is specified as 'FEDEX SUPPLY CHAIN DISTRIBUTION SYSTEM, INC.', suggesting a specific entity was selected.
Taxpayer Impact: The use of full and open competition is generally beneficial for taxpayers as it promotes competitive pricing. The final price reflects the outcome of this competitive process.
Public Impact
Ensures efficient mail processing for VA facilities nationwide. Supports the operational needs of the Department of Veterans Affairs. Impacts mail logistics and delivery services for veterans' benefits and communications.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for price increases if competition was not robust.
- Dependence on a single vendor for critical manifesting services.
Positive Signals
- Firm Fixed Price contract type provides cost certainty.
- Awarded under full and open competition.
Sector Analysis
Mail manifesting services are a crucial component of logistics and administrative operations, particularly for large government agencies. Spending in this sector is driven by the need for efficient mail handling and tracking.
Small Business Impact
The data does not indicate any specific provisions or set-asides for small businesses in this contract award. The awardee is a large corporation, suggesting limited direct opportunities for small businesses on this specific contract.
Oversight & Accountability
The contract is managed by the Department of Veterans Affairs. Oversight would focus on ensuring service delivery meets the terms of the contract and that pricing remains competitive throughout the performance period.
Related Government Programs
- All Other Business Support Services
- Department of Veterans Affairs Contracting
- Department of Veterans Affairs Programs
Risk Flags
- Limited competition despite 'full and open' designation.
- Potential for vendor lock-in.
- Lack of transparency on specific service volumes and unit costs.
- Dependence on a single large corporation.
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 $83.1 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 $83.1 million.
What is the period of performance?
Start: 2024-10-01. End: 2025-10-29.
What was the specific competitive landscape during the full and open competition for this contract?
While the award states 'full and open competition', the specific details of the bidding process, the number of bids received, and the evaluation criteria are not provided. Understanding this would clarify if the competition was truly robust or if certain factors favored the eventual awardee, potentially impacting the final price achieved for the taxpayer.
How does the per-unit cost of this contract compare to industry benchmarks for similar manifesting services?
Without specific details on the volume of mail, types of services rendered, and the exact pricing structure per unit (e.g., per piece, per pound), a direct comparison to industry benchmarks is not feasible. A detailed cost analysis would be required to assess if the $83.1M award represents a fair and reasonable price for the services provided.
What are the potential risks associated with relying on FedEx Supply Chain Distribution System for these services over the contract duration?
Risks include potential service disruptions if FedEx faces internal issues, price escalations not fully captured by the firm fixed price if unforeseen circumstances arise, and a lack of flexibility to switch providers if a better solution emerges. The long-term dependence on one vendor could also limit innovation and cost-saving opportunities.
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: $83,111,542
Exercised Options: $83,111,542
Current Obligation: $83,111,542
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: 2025-10-29
Potential End Date: 2025-10-29 00:00:00
Last Modified: 2025-10-29
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