VA awards $27.4M contract for mail manifesting services to FedEx Supply Chain

Contract Overview

Contract Amount: $27,411,688 ($27.4M)

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: $75.3K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: MAIL MANIFESTING SERVICES

Place of Performance

Location: CHELMSFORD, MIDDLESEX County, MASSACHUSETTS, 01824

State: Massachusetts Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $27.4 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. Focus on logistics and distribution services. 3. Potential for cost savings through consolidated shipping. 4. Service area covers Massachusetts. 5. Contract duration is one year.

Value Assessment

Rating: good

The contract value of $27.4M for one year appears reasonable given the scope of mail manifesting and distribution services. Benchmarking against similar large-scale logistics contracts would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating a competitive bidding process. This method is expected to yield fair market prices for the services rendered.

Taxpayer Impact: The use of a competitive process aims to ensure taxpayer funds are used efficiently for essential mail manifesting services.

Public Impact

Ensures efficient processing and delivery of mail for VA operations. Supports the logistical needs of a major federal agency. Contributes to the smooth functioning of VA healthcare and administrative services.

Waste & Efficiency Indicators

Waste Risk Score: 70 / 10

Warning Flags

Reliance on a single vendor for critical logistics.
Potential for price increases in future contract renewals.

Positive Signals

Competitive award process.
Clear service period.
Use of a BPA Call mechanism.

Sector Analysis

This contract falls under business support services, specifically mail manifesting and distribution. Spending in this sector is driven by the operational needs of government agencies requiring efficient mail handling and logistics.

Small Business Impact

The data does not indicate any specific provisions or set-asides for small businesses in this contract award. Further analysis would be needed to determine if small businesses had an opportunity to participate.

Oversight & Accountability

The contract was awarded via a BPA Call, suggesting it leverages an existing master agreement. Oversight would focus on performance metrics and adherence to the terms of the BPA and the call order.

Related Government Programs

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

Risk Flags

Vendor lock-in potential
Service disruption risk
Price escalation in future
Limited visibility into small business participation

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $27.4 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 $27.4 million.

What is the period of performance?

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

What is the expected efficiency gain from using FedEx for mail manifesting compared to previous methods?

The expected efficiency gain is likely related to consolidated shipping, optimized routing, and streamlined processing. FedEx's established infrastructure and technology are anticipated to reduce handling times and potentially lower overall postage costs for the VA. Quantifying this gain would require comparing current operational metrics with historical data or industry benchmarks for similar services.

What are the risks associated with relying on a single vendor for mail manifesting services?

The primary risk is vendor lock-in and potential disruption of services if the vendor faces operational issues, financial instability, or decides not to renew the contract. This could lead to delays in mail processing and delivery, impacting VA operations. Mitigation strategies include robust performance monitoring and contingency planning.

How does this contract contribute to the VA's overall mission effectiveness?

Efficient mail manifesting and distribution are crucial for the VA's administrative functions, communication with beneficiaries, and delivery of healthcare-related materials. By ensuring timely and accurate mail processing, this contract supports the seamless operation of VA services, ultimately contributing to the effective care and support provided to veterans.

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: $27,411,688

Exercised Options: $27,411,688

Current Obligation: $27,411,688

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 36C77020A0009

IDV Type: BPA

Timeline