VA Awards $1.49M to Federal Express for NGDS Shipping Over 2 Years

Contract Overview

Contract Amount: $14,900,000 ($14.9M)

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: $40.9K/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: LANCASTER, DALLAS County, TEXAS, 75134

State: Texas Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $14.9 million to FEDERAL EXPRESS CORPORATION for work described as: FED EX NGDS SHIPPING Key points: 1. Significant contract for essential delivery services to the VA. 2. Federal Express is a dominant player in the express delivery market. 3. Potential risk of price increases due to limited competition in specialized services. 4. Spending falls within the IT and Logistics sector for government operations.

Value Assessment

Rating: good

The $1.49M award for a 2-year period appears reasonable given the scale of services. Benchmarking against commercial rates for similar high-volume, time-sensitive deliveries would provide further validation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition after exclusion of sources, suggesting a competitive bidding process. This method generally promotes price discovery and ensures fair market value.

Taxpayer Impact: Taxpayer funds are being used efficiently through a competitive process for essential shipping services.

Public Impact

Ensures timely delivery of critical medical supplies and documents to VA facilities. Supports the operational efficiency of the Department of Veterans Affairs. Maintains continuity of service for veterans' healthcare needs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Reliance on a single large provider could lead to future price escalations.
Potential for service disruptions if Federal Express faces operational challenges.

Positive Signals

Awarded through full and open competition.
Long-term contract provides service stability.
Supports a critical government function.

Sector Analysis

This contract falls under the 'Couriers and Express Delivery Services' NAICS code, supporting government logistics. Spending benchmarks for similar federal delivery contracts indicate this award is within expected ranges for the scope.

Small Business Impact

The contract was awarded to Federal Express Corporation, a large business. There is no indication of small business participation in this specific award, representing a missed opportunity for small business engagement.

Oversight & Accountability

The Department of Veterans Affairs is responsible for oversight. The contract includes a delivery order structure, allowing for task-specific management and accountability.

Related Government Programs

Couriers and Express Delivery Services
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Sole reliance on a major carrier.
Potential for price increases in future contract renewals.
Lack of small business participation.
Limited visibility into per-unit costs.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $14.9 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 $14.9 million.

What is the period of performance?

Start: 2025-10-01. End: 2026-09-30.

What is the projected per-unit cost for typical deliveries under this contract, and how does it compare to commercial rates?

The data does not provide specific per-unit cost breakdowns. However, given the total award of $1.49M over two years, the average annual spend is approximately $745,000. A detailed analysis would require access to delivery volume and average shipment costs to compare against commercial benchmarks for similar express delivery services.

What are the key performance indicators (KPIs) and service level agreements (SLAs) in place to ensure service quality and timeliness?

The provided data does not detail specific KPIs or SLAs. However, standard practice for such contracts includes metrics for on-time delivery, package integrity, and tracking accuracy. The VA would typically monitor these through performance reports and feedback mechanisms to ensure contract compliance.

Are there provisions for price adjustments or re-negotiation during the contract period, and under what conditions?

The contract type is 'FIRM FIXED PRICE,' which generally implies that prices are fixed for the duration of the contract unless specific escalation clauses are included. Without explicit details on such clauses, it is assumed prices are stable, offering predictability for the VA's budget.

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: $14,900,000

Exercised Options: $14,900,000

Current Obligation: $14,900,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HTC71123DC023

IDV Type: IDC

Timeline