VA Awards $54M Contract for Mail Manifesting Services to FedEx Supply Chain
Contract Overview
Contract Amount: $53,974,390 ($54.0M)
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: $148.3K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: MAIL MANIFESTING SERVICES
Place of Performance
Location: LANCASTER, DALLAS County, TEXAS, 75134
State: Texas Government Spending
Plain-Language Summary
Department of Veterans Affairs obligated $54.0 million to FEDEX SUPPLY CHAIN DISTRIBUTION SYSTEM, INC. for work described as: MAIL MANIFESTING SERVICES Key points: 1. Contract value of $53.97M over 2 years. 2. FedEx Supply Chain Distribution System, Inc. is the awardee. 3. Competition was full and open, suggesting potential for competitive pricing. 4. The sector is Business Support Services, specifically mail manifesting.
Value Assessment
Rating: good
The contract value of $53.97M for 2 years appears reasonable for comprehensive mail manifesting services. Benchmarking against similar large-scale logistics and business support 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 that multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and ensures the government receives the best value.
Taxpayer Impact: The use of full and open competition is expected to yield a fair price for taxpayers, maximizing value for the services rendered.
Public Impact
Ensures efficient mail processing for the Department of Veterans Affairs. Supports the operational needs of a major federal agency. Potential impact on mail delivery timelines and costs for VA beneficiaries. Highlights the reliance on private sector logistics for government functions.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in if performance is exceptional.
- Reliance on a single vendor for critical mail services.
Positive Signals
- Full and open competition utilized.
- Firm Fixed Price contract type limits cost overrun risk.
- Awarded to a well-established logistics provider.
Sector Analysis
This contract falls within the Business Support Services sector, specifically focusing on mail manifesting. Spending in this area is crucial for efficient government operations, enabling the smooth flow of official communications and packages.
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 were excluded or had opportunities to participate as subcontractors.
Oversight & Accountability
The contract's oversight will likely involve the Department of Veterans Affairs' contracting officers and program managers to ensure performance standards are met and that the services align with VA's operational requirements.
Related Government Programs
- All Other Business Support Services
- Department of Veterans Affairs Contracting
- Department of Veterans Affairs Programs
Risk Flags
- Potential for service disruptions if FedEx experiences operational issues.
- Lack of transparency regarding small business participation.
- Long-term reliance on a single provider could limit future cost-saving opportunities.
- Scope creep could lead to increased costs beyond the initial $54M.
Tags
all-other-business-support-services, department-of-veterans-affairs, tx, bpa-call, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Veterans Affairs awarded $54.0 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 $54.0 million.
What is the period of performance?
Start: 2025-10-01. End: 2026-09-30.
What is the specific scope of 'mail manifesting services' and how does it differ from standard mail processing?
Mail manifesting services typically involve the detailed tracking, sorting, and preparation of bulk mailings according to postal regulations and carrier requirements. This includes generating manifests, applying postage, and optimizing delivery routes for cost and efficiency. It goes beyond basic mail processing by providing a comprehensive logistical solution for large volumes of mail, often tailored to specific agency needs and contractual agreements.
What are the key performance indicators (KPIs) for this contract, and how will they be measured?
Key performance indicators likely include metrics such as mail processing accuracy, on-time dispatch rates, cost per piece, and compliance with postal regulations. The VA will monitor these KPIs through regular reporting from FedEx, site visits, and potentially through performance audits. Failure to meet these KPIs could result in penalties or contract modifications, ensuring accountability for service delivery.
How does this contract contribute to the VA's overall mission and operational efficiency?
This contract is vital for the VA's mission by ensuring the timely and cost-effective delivery of essential communications, medical supplies, and administrative documents to veterans and VA facilities nationwide. Efficient mail manifesting reduces administrative overhead, minimizes delays in critical information flow, and supports the seamless operation of healthcare services and benefits administration, ultimately enhancing the veteran experience.
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: $53,974,390
Exercised Options: $53,974,390
Current Obligation: $53,974,390
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
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