VA awards $53M contract for Mail Manifesting Services to FedEx Supply Chain Distribution System, Inc

Contract Overview

Contract Amount: $53,096,729 ($53.1M)

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: $145.9K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: MAIL MANIFESTING SERVICES

Place of Performance

Location: HINES, COOK County, ILLINOIS, 60141

State: Illinois Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $53.1 million to FEDEX SUPPLY CHAIN DISTRIBUTION SYSTEM, INC. for work described as: MAIL MANIFESTING SERVICES Key points: 1. The contract is for Mail Manifesting Services, a crucial operational support function. 2. FedEx Supply Chain Distribution System, Inc. is the sole awardee. 3. The contract duration is one year, with a firm fixed price. 4. The NAICS code 561499 indicates 'All Other Business Support Services'.

Value Assessment

Rating: good

The award amount of $53,096,728.54 for a one-year contract appears reasonable for comprehensive mail manifesting services. Benchmarking against similar large-scale logistics and business support contracts 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, suggesting a competitive bidding process. This method is expected to yield fair market prices and ensure value for the government.

Taxpayer Impact: The firm fixed price contract provides cost certainty for taxpayers, protecting against cost overruns for the specified services.

Public Impact

Ensures efficient processing and tracking of mail for the Department of Veterans Affairs. Supports the operational needs of a major federal agency, impacting service delivery. Potential for improved mail logistics and cost savings through specialized services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics in the provided data.
Potential for vendor lock-in if services are highly integrated.

Positive Signals

Awarded under full and open competition.
Firm fixed price contract provides cost predictability.

Sector Analysis

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

Small Business Impact

The data does not indicate any specific set-asides for small businesses. The award to a large corporation like FedEx suggests that small business participation may be limited in this particular contract.

Oversight & Accountability

Oversight will be crucial to ensure FedEx meets performance expectations and adheres to the firm fixed price. The Department of Veterans Affairs contracting office is responsible for monitoring contract performance.

Related Government Programs

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

Risk Flags

Sole awardee.
Contract duration is one year, requiring potential re-competition soon.
No specific small business participation noted.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $53.1 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 $53.1 million.

What is the period of performance?

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

What is the expected impact of this contract on the VA's overall mail processing efficiency and cost savings?

This contract is expected to streamline the VA's mail manifesting process, potentially leading to significant efficiency gains and cost reductions through optimized logistics and tracking. The firm fixed price structure provides budgetary certainty, allowing the VA to better forecast expenses related to mail services.

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

Key risks include potential service disruptions if FedEx faces operational issues, and the possibility of the firm fixed price not reflecting true market value if competition was limited in practice. Mitigation strategies likely involve robust performance monitoring by the VA and clear contractual remedies for non-performance.

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

By ensuring efficient and reliable mail manifesting services, this contract indirectly supports the VA's mission effectiveness by facilitating the timely delivery of communications, benefits information, and supplies to veterans and staff. Smooth mail operations are essential for administrative functions.

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: $53,096,729

Exercised Options: $53,096,729

Current Obligation: $53,096,729

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 36C77020A0009

IDV Type: BPA

Timeline