VA Awards $17M to Federal Express for NGDS Shipping Over Two Years
Contract Overview
Contract Amount: $16,989,120 ($17.0M)
Contractor: Federal Express Corporation
Awarding Agency: Department of Veterans Affairs
Start Date: 2025-10-01
End Date: 2026-09-30
Contract Duration: 364 days
Daily Burn Rate: $46.7K/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: FED EX NGDS SHIPPING
Place of Performance
Location: TUCSON, PIMA County, ARIZONA, 85706
State: Arizona Government Spending
Plain-Language Summary
Department of Veterans Affairs obligated $17.0 million to FEDERAL EXPRESS CORPORATION for work described as: FED EX NGDS SHIPPING Key points: 1. Significant contract value of $16.99 million for express delivery services. 2. Federal Express Corporation is the sole awardee, indicating a specific provider. 3. The contract is for a firm-fixed-price delivery order, providing cost certainty. 4. Services are for the Department of Veterans Affairs, supporting critical operations.
Value Assessment
Rating: good
The $16.99 million award for a 364-day period appears reasonable given the scope of express delivery services. Benchmarking against similar government contracts for courier and express delivery would provide a more precise assessment of value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' suggesting a limited competition scenario. This method might impact price discovery compared to unrestricted full and open competition.
Taxpayer Impact: Taxpayer funds are being used for essential shipping services. The firm-fixed-price structure helps control costs, but the limited competition aspect warrants scrutiny for potential cost efficiencies.
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 a reliable logistics network for government agencies.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition may not yield the best possible price.
- Contract duration is relatively short, requiring potential re-competition soon.
Positive Signals
- Firm-fixed-price contract provides cost predictability.
- Awardee is a well-established logistics provider.
- Supports a vital government agency's mission.
Sector Analysis
The contract falls within the 'Couriers and Express Delivery Services' sector. Government spending in this area is crucial for maintaining operational continuity and timely delivery of goods and services across various agencies.
Small Business Impact
This contract does not appear to have specific set-asides for small businesses, as indicated by 'sb': false. The awardee, Federal Express Corporation, is a large business.
Oversight & Accountability
The Department of Veterans Affairs is responsible for oversight of this contract. The firm-fixed-price nature and delivery order structure allow for defined performance metrics and accountability.
Related Government Programs
- Couriers and Express Delivery Services
- Department of Veterans Affairs Contracting
- Department of Veterans Affairs Programs
Risk Flags
- Potential for higher costs due to limited competition.
- Lack of small business participation.
- Dependence on a single large provider.
- Need for ongoing monitoring of service performance and pricing.
Tags
couriers-and-express-delivery-services, department-of-veterans-affairs, az, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Veterans Affairs awarded $17.0 million to FEDERAL EXPRESS CORPORATION. FED EX 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 $17.0 million.
What is the period of performance?
Start: 2025-10-01. End: 2026-09-30.
What specific services are included under 'NGDS SHIPPING' and how do they align with VA's critical needs?
NGDS likely refers to a specific logistics program or network for the Department of Veterans Affairs. The services would encompass the expedited transport of medical supplies, pharmaceuticals, lab samples, and administrative documents critical for veteran care and agency operations. The contract's value suggests a significant volume and urgency of shipments.
What factors led to the 'exclusion of sources' in this full and open competition, and what was the impact on pricing?
The exclusion of sources typically occurs when specific capabilities, security requirements, or existing infrastructure necessitate a limited pool of eligible bidders. This could be due to specialized equipment, geographic coverage, or integration with existing VA systems. While it ensures a suitable provider, it may limit competitive pressure, potentially leading to higher prices than if all potential vendors could compete.
How does the $16.99 million award compare to historical spending for similar express delivery services by the VA or other federal agencies?
A direct comparison requires access to historical contract data for similar services. However, $16.99 million over two years for express delivery suggests substantial usage. Benchmarking against average per-package costs or total annual spending for logistics by agencies of similar size and mission would be necessary to determine if this represents efficient or excessive spending.
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: $16,989,120
Exercised Options: $16,989,120
Current Obligation: $16,989,120
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HTC71123DC023
IDV Type: IDC
Timeline
Start Date: 2025-10-01
Current End Date: 2026-09-30
Potential End Date: 2026-09-30 00:00:00
Last Modified: 2026-04-02
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