VA Awards $41M for Mail Manifesting Services to FedEx Supply Chain Distribution System
Contract Overview
Contract Amount: $41,019,701 ($41.0M)
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: $112.7K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: MAIL MANIFESTING SERVICES
Place of Performance
Location: TUCSON, PIMA County, ARIZONA, 85706
State: Arizona Government Spending
Plain-Language Summary
Department of Veterans Affairs obligated $41.0 million to FEDEX SUPPLY CHAIN DISTRIBUTION SYSTEM, INC. for work described as: MAIL MANIFESTING SERVICES Key points: 1. The contract value is $41.02 million over 364 days. 2. FedEx Supply Chain Distribution System, Inc. is the sole awardee. 3. The contract is for 'All Other Business Support Services' (NAICS 561499). 4. The award method is a BPA Call under a Firm Fixed Price contract. 5. The contract is not set-aside for small businesses.
Value Assessment
Rating: fair
The contract is a BPA Call, suggesting it leverages pre-negotiated terms. Without access to the underlying BPA, a direct pricing comparison is difficult. However, the firm fixed price structure provides cost certainty.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating multiple vendors had the opportunity to bid. The use of a BPA Call suggests a streamlined process for task orders against an existing agreement.
Taxpayer Impact: The firm fixed price contract aims to control costs for taxpayers, with competition intended to ensure reasonable pricing.
Public Impact
Veterans will benefit from efficient mail processing and delivery services. The contract supports essential administrative functions within the Department of Veterans Affairs. The use of a large, established provider like FedEx may ensure reliable service delivery.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific performance metrics in the provided data.
- Potential for price increases in future contract renewals.
- Dependence on a single vendor for a critical service.
Positive Signals
- Awarded under full and open competition.
- Firm Fixed Price contract provides cost predictability.
- Leverages existing BPA for potential efficiency.
Sector Analysis
This contract falls under business support services, a broad category. Spending benchmarks for mail manifesting services are not readily available, but the value suggests a significant operational need for the VA.
Small Business Impact
The contract was not set-aside for small businesses, meaning opportunities for small business participation were not explicitly prioritized in this award.
Oversight & Accountability
The award is a BPA Call, which implies oversight exists within the parent BPA. Further oversight details would depend on the specific BPA's terms and the VA's internal monitoring processes.
Related Government Programs
- All Other Business Support Services
- Department of Veterans Affairs Contracting
- Department of Veterans Affairs Programs
Risk Flags
- Sole awardee for a significant contract value.
- Contract duration of nearly a full year.
- Lack of specific performance metrics in the provided data.
- Potential for vendor lock-in.
- No small business set-aside.
Tags
all-other-business-support-services, department-of-veterans-affairs, az, bpa-call, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Veterans Affairs awarded $41.0 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 $41.0 million.
What is the period of performance?
Start: 2025-10-01. End: 2026-09-30.
What is the specific service provided under 'Mail Manifesting Services' and how does it differ from standard mail processing?
Mail manifesting services typically involve the electronic tracking and documentation of outgoing mail, often for bulk mailings or shipments. This allows for detailed record-keeping, postage calculation, and compliance with postal regulations. It differs from standard mail processing by focusing on the administrative and data-intensive aspects of managing large volumes of mail, rather than the physical sorting and delivery.
What are the key performance indicators (KPIs) for this contract to ensure service effectiveness and value for money?
Key performance indicators for mail manifesting services could include mail processing accuracy rates, on-time dispatch percentages, cost per piece processed, and system uptime. Effective KPIs would measure the efficiency and reliability of the manifesting system, ensuring that the VA receives timely and accurate data for its mail operations, thereby justifying the $41 million expenditure.
How does the VA ensure competitive pricing and prevent cost creep when utilizing BPA calls for recurring services like this?
The VA ensures competitive pricing through the initial full and open competition for the parent BPA, establishing a baseline. For BPA calls, they can solicit quotes from multiple vendors on the BPA or ensure the call itself is competitively priced against market rates. Regular review of service costs and performance against benchmarks helps prevent cost creep and ensures continued value.
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: $41,019,701
Exercised Options: $41,019,701
Current Obligation: $41,019,701
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: 36C77020A0009
IDV Type: BPA
Timeline
Start Date: 2025-10-01
Current End Date: 2026-09-30
Potential End Date: 2026-09-30 00:00:00
Last Modified: 2026-03-24
More Contracts from Fedex Supply Chain Distribution System, Inc.
- FOR Mail Manifesting Services for 7 Cmop Locations — $831.5M (Department of Veterans Affairs)
- Mail Manifesting Services — $83.1M (Department of Veterans Affairs)
- Mail Manifesting Services — $75.0M (Department of Veterans Affairs)
- Mail Manifesting Services — $71.6M (Department of Veterans Affairs)
- Mail Manifesting Services — $67.8M (Department of Veterans Affairs)
View all Fedex Supply Chain Distribution System, Inc. federal contracts →
Other Department of Veterans Affairs Contracts
- CCN Region 3 Express Report — $5.2B (Optum Public Sector Solutions, Inc.)
- Express Report for FY22 Region 2 — $5.1B (Optum Public Sector Solutions, Inc.)
- Fiscal Year 2022 Express Report for Region 1 — $4.2B (Optum Public Sector Solutions, Inc.)
- Express Report for the Patient Centered Community Care (PC3) Contract — $3.3B (Triwest Healthcare Alliance Corp)
- CCN Region Three FY21 Express Report — $3.1B (Optum Public Sector Solutions, Inc.)