VA awards $36.3M contract for mail manifesting services to FedEx Supply Chain Distribution System, Inc

Contract Overview

Contract Amount: $36,305,201 ($36.3M)

Contractor: Fedex Supply Chain Distribution System, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-10-01

End Date: 2026-09-30

Contract Duration: 364 days

Daily Burn Rate: $99.7K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: MAIL MANIFESTING SERVICES

Place of Performance

Location: LEAVENWORTH, LEAVENWORTH County, KANSAS, 66048

State: Kansas Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $36.3 million to FEDEX SUPPLY CHAIN DISTRIBUTION SYSTEM, INC. for work described as: MAIL MANIFESTING SERVICES Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract is for mail manifesting services, a critical component of logistics operations. 3. FedEx Supply Chain Distribution System, Inc. is the sole awardee for this specific BPA call. 4. The contract duration is one year, with a potential for extension. 5. The award value of $36.3 million indicates a significant investment in logistics support. 6. The contract type is Firm Fixed Price, which provides cost certainty for the government.

Value Assessment

Rating: good

The contract value of $36.3 million for one year of mail manifesting services appears to be within a reasonable range for large-scale government logistics operations. Benchmarking against similar contracts for comprehensive mail and package management services would provide a more precise value-for-money assessment. The Firm Fixed Price structure helps mitigate cost overruns, offering predictability for the Department of Veterans Affairs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. The specific number of bidders is not provided, but the 'full and open' designation suggests a robust competitive environment was sought. This approach generally leads to better price discovery and potentially more innovative solutions.

Taxpayer Impact: A competitive bidding process for mail manifesting services helps ensure that taxpayer dollars are used efficiently by driving down costs through market forces.

Public Impact

Veterans will benefit from efficient and reliable delivery of medical supplies, correspondence, and other essential items facilitated by these services. The contract supports the operational efficiency of the Department of Veterans Affairs by streamlining mail and package handling. Services are likely to have a national impact, supporting VA facilities across the country. The contract supports jobs within the logistics and supply chain sector, specifically through FedEx Supply Chain Distribution System, Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for over-reliance on a single vendor for a critical function.
Lack of specific details on performance metrics and service level agreements.
Limited visibility into the subcontracting plans, if any, for small businesses.

Positive Signals

Award to a well-established logistics provider with significant infrastructure.
Firm Fixed Price contract provides cost certainty.
Full and open competition suggests a deliberate effort to secure competitive pricing.

Sector Analysis

The mail manifesting services sector is a crucial part of the broader business support services industry, encompassing logistics, shipping, and supply chain management. This contract fits within the government's need for efficient handling of vast quantities of mail and packages. Comparable spending benchmarks would involve analyzing other large federal contracts for similar logistics and shipping management services across various agencies.

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). While FedEx Supply Chain Distribution System, Inc. is a large entity, there may be opportunities for small businesses to participate as subcontractors. Further analysis would be needed to determine the extent of small business subcontracting planned for this award.

Oversight & Accountability

Oversight for this contract will likely be managed by the contracting officers and program managers within the Department of Veterans Affairs. Accountability measures are inherent in the Firm Fixed Price contract type, which obligates the contractor to deliver services at the agreed-upon price. Transparency is generally maintained through contract award databases, though specific performance monitoring details may not be publicly disclosed.

Related Government Programs

Federal Express Corporation contracts
Logistics and Supply Chain Management Services
Business Support Services
Department of Veterans Affairs Mail Services

Risk Flags

Potential for vendor lock-in due to specialized services.
Dependence on a single large provider for critical logistics.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $36.3 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 $36.3 million.

What is the period of performance?

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

What is the historical spending pattern for mail manifesting services by the Department of Veterans Affairs?

Analyzing historical spending for mail manifesting services by the Department of Veterans Affairs (VA) is crucial for understanding the long-term investment in this area and for establishing relevant benchmarks. While specific historical data for this exact BPA call is not provided, the VA, as a large federal agency, consistently requires significant mail and package handling services to support its widespread operations, including the distribution of medical supplies, pharmaceuticals, and administrative correspondence. Past contracts for similar services would likely show substantial annual expenditures, potentially in the tens of millions of dollars, depending on the scope and scale of operations. Trends in this spending could be influenced by changes in healthcare delivery models, increased use of telehealth requiring equipment shipments, and overall growth in VA facility networks. A detailed review of previous contract awards for logistics, shipping, and mailroom management within the VA would reveal spending trends, identify key incumbent contractors, and highlight any significant shifts in contract values or service requirements over time.

How does the awarded price compare to market rates for similar mail manifesting services?

The awarded price of $36.3 million for one year of mail manifesting services needs to be compared against market rates for similar large-scale logistics and shipping management solutions. Factors influencing market rates include the volume of mail and packages, the geographic scope of services, the types of services required (e.g., tracking, sorting, delivery confirmation), and the level of technology integration. For a contract of this magnitude, awarded to a major logistics provider like FedEx Supply Chain Distribution System, Inc., the price is likely competitive within the industry for comprehensive, nationwide support. However, without specific details on the service level agreements and the exact volume metrics, a precise comparison is challenging. Benchmarking against other federal contracts for similar services, or against commercial enterprise-level logistics contracts, would provide a clearer picture of whether this award represents excellent, good, or fair value for the government.

What are the key performance indicators (KPIs) and service level agreements (SLAs) associated with this contract?

The specific Key Performance Indicators (KPIs) and Service Level Agreements (SLAs) for this $36.3 million mail manifesting services contract are not detailed in the provided data. However, for a contract of this nature, typical KPIs and SLAs would likely focus on aspects such as on-time delivery rates, package tracking accuracy, mail processing efficiency, cost per package handled, and customer service responsiveness. The Department of Veterans Affairs would expect FedEx Supply Chain Distribution System, Inc. to meet stringent performance standards to ensure the seamless flow of critical items. Failure to meet these agreed-upon metrics could result in financial penalties or other contractual remedies. The effectiveness of the contract's value for money is heavily dependent on the robustness and enforcement of these KPIs and SLAs.

What is the track record of FedEx Supply Chain Distribution System, Inc. in performing similar government contracts?

FedEx Supply Chain Distribution System, Inc., as a subsidiary of FedEx Corporation, has a substantial track record in providing logistics, supply chain, and distribution services to both commercial and government entities. While specific details of their past performance on VA contracts are not provided here, FedEx is a globally recognized leader in logistics, known for its extensive network, technological capabilities, and operational expertise. Their experience likely includes managing large-scale distribution networks, handling high volumes of shipments, and meeting demanding delivery schedules. Government agencies often rely on established logistics providers like FedEx for critical support functions due to their proven capabilities and infrastructure. A thorough review of their contract performance history, including any past performance evaluations or awards from federal agencies, would offer deeper insights into their reliability and effectiveness in fulfilling government requirements.

What are the potential risks associated with this contract, and how are they being mitigated?

Potential risks associated with this $36.3 million mail manifesting services contract include service disruptions, cost overruns (though mitigated by FFP), data security breaches related to shipment information, and potential underperformance against SLAs. Given that FedEx Supply Chain Distribution System, Inc. is a large, established provider, the risk of major service disruption is likely reduced. Mitigation strategies are inherent in the contract structure: the Firm Fixed Price (FFP) nature caps the government's financial exposure, and the 'full and open competition' process aims to select a capable vendor. The VA would also likely have performance monitoring mechanisms and contingency plans in place. Specific risk mitigation details would be outlined in the contract's statement of work and associated clauses.

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: $36,305,201

Exercised Options: $36,305,201

Current Obligation: $36,305,201

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 36C77020A0009

IDV Type: BPA

Timeline