VA Awards $75M Contract for Mail Manifesting Services to FedEx Supply Chain
Contract Overview
Contract Amount: $75,000,000 ($75.0M)
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: $206.0K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: MAIL MANIFESTING SERVICES
Place of Performance
Location: LADSON, BERKELEY County, SOUTH CAROLINA, 29456
Plain-Language Summary
Department of Veterans Affairs obligated $75.0 million to FEDEX SUPPLY CHAIN DISTRIBUTION SYSTEM, INC. for work described as: MAIL MANIFESTING SERVICES Key points: 1. The Department of Veterans Affairs (VA) has awarded a significant contract valued at $75 million for mail manifesting services. 2. FedEx Supply Chain Distribution System, Inc. is the sole awardee, indicating a potentially limited competitive landscape. 3. The contract duration is one year, with a firm fixed-price structure. 4. The NAICS code 561499 suggests a broad category of business support services.
Value Assessment
Rating: fair
The contract value of $75 million for a one-year term appears substantial for mail manifesting services. Benchmarking against similar contracts for large-scale logistics and business support services is necessary to assess if this pricing is competitive.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Although listed as 'full and open competition,' the award to a single entity, FedEx Supply Chain Distribution System, Inc., raises questions about the actual breadth of competition achieved. The impact on price discovery depends on the rigor of the bidding process.
Taxpayer Impact: Taxpayers are impacted by the $75 million expenditure, with the value for money dependent on the efficiency and cost-effectiveness of the services provided.
Public Impact
Ensures efficient processing and tracking of mail for the Department of Veterans Affairs. Supports critical administrative functions within the VA, potentially impacting veterans' benefits and communications. The large contract value suggests a significant operational scale and reliance on this service. Potential for service disruptions if the provider faces operational challenges.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited visibility into the competitive process despite 'full and open' designation.
- Concentration of service provision with a single large vendor.
Positive Signals
- Clear contract duration and pricing structure.
- Award to a known logistics provider.
Sector Analysis
The 'All Other Business Support Services' sector is broad. For mail manifesting, benchmarks would typically relate to logistics, document management, and supply chain services. A $75 million contract suggests a high volume of mail processing, potentially exceeding typical departmental needs.
Small Business Impact
The data indicates no specific set-aside for small businesses. The award to FedEx suggests large-scale capabilities were prioritized, potentially limiting opportunities for smaller, specialized service providers in this contract.
Oversight & Accountability
Oversight will be crucial to ensure the VA receives the full value of the $75 million investment. Monitoring performance metrics and adherence to the firm fixed-price contract terms will be key accountability measures.
Related Government Programs
- All Other Business Support Services
- Department of Veterans Affairs Contracting
- Department of Veterans Affairs Programs
Risk Flags
- Potential lack of robust competition.
- High contract value for a single year.
- Dependence on a single vendor.
- Service disruption risk.
Tags
all-other-business-support-services, department-of-veterans-affairs, sc, bpa-call, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Veterans Affairs awarded $75.0 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 $75.0 million.
What is the period of performance?
Start: 2025-10-01. End: 2026-09-30.
What specific metrics define the 'value' of this mail manifesting service for the VA, and how will they be measured against the $75 million cost?
Value will be defined by metrics such as mail processing speed, accuracy rates, cost per piece handled, reduction in lost mail, and overall efficiency gains in administrative workflows. The VA will likely track these against the total contract cost to ensure the $75 million investment yields tangible benefits in operational efficiency and service delivery.
What are the primary risks associated with awarding a $75 million contract for mail manifesting to a single provider, even under 'full and open competition'?
The primary risks include vendor lock-in, reduced leverage for future negotiations, and potential service disruptions if the sole provider experiences operational issues. There's also a risk that the 'full and open' competition may not have attracted sufficient alternative bids, leading to a suboptimal price or service level.
How effective is the 'full and open competition' designation when the award is made to a single entity, and what does this imply for the VA's procurement strategy?
The effectiveness is questionable if only one bid is received or deemed acceptable. This implies the VA's strategy might rely on established large vendors or that the market for this specific service is highly concentrated. Future strategies should focus on ensuring broader market engagement or refining requirements to attract more diverse bidders.
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: $75,000,000
Exercised Options: $75,000,000
Current Obligation: $75,000,000
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: 2026-03-25
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