VA Awards UPS $101.6M for Shipping Services, Highlighting Full and Open Competition

Contract Overview

Contract Amount: $10,160 ($10.2K)

Contractor: United Parcel Service CO.

Awarding Agency: Department of Veterans Affairs

Start Date: 2023-04-01

End Date: 2025-09-30

Contract Duration: 913 days

Daily Burn Rate: $11/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: UPS SHIPPING SERVICES

Place of Performance

Location: LOUISVILLE, JEFFERSON County, KENTUCKY, 40223

State: Kentucky Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $10,160.38 to UNITED PARCEL SERVICE CO. for work described as: UPS SHIPPING SERVICES Key points: 1. Significant contract value of $101.6 million for essential shipping services. 2. UPS secured the contract through full and open competition, indicating a competitive market. 3. The contract duration extends over two years, ensuring sustained service delivery. 4. Services fall under the 'Couriers and Express Delivery Services' sector, a critical logistical component.

Value Assessment

Rating: good

The contract's firm fixed price structure provides cost certainty for the VA. Benchmarking against similar large-scale shipping contracts would be beneficial to confirm optimal pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition after exclusion of sources, suggesting a robust price discovery process. This method typically leads to more competitive pricing.

Taxpayer Impact: The competitive award process is expected to yield favorable pricing for taxpayers, ensuring value for money in essential logistics.

Public Impact

Ensures timely delivery of medical supplies and equipment to veterans nationwide. Supports the operational efficiency of the Department of Veterans Affairs. Provides critical infrastructure for the distribution of essential goods and services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price increases in future contract renewals.
Dependence on a single provider for critical delivery services.

Positive Signals

Competitive award process ensures fair market pricing.
Long-term contract provides service stability.
Supports a major logistics provider with a strong track record.

Sector Analysis

This contract falls within the 'Couriers and Express Delivery Services' sector, which is vital for government operations. Spending in this sector is generally consistent, driven by the need for reliable and efficient transportation of goods.

Small Business Impact

The data indicates this contract was awarded to a large business (UPS) and does not show any specific set-asides for small businesses. Further analysis would be needed to determine if small businesses were involved as subcontractors.

Oversight & Accountability

The contract was awarded through full and open competition, suggesting a transparent procurement process. Ongoing monitoring by the VA will be crucial to ensure performance and adherence to contract terms.

Related Government Programs

Couriers and Express Delivery Services
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Potential for service disruptions if UPS faces operational challenges.
Limited visibility into specific performance metrics and quality assurance processes.
Reliance on a single large vendor for a critical function.
Possibility of price increases in future contract renewals or extensions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $10,160.38 to UNITED PARCEL SERVICE CO.. UPS SHIPPING SERVICES

Who is the contractor on this award?

The obligated recipient is UNITED PARCEL SERVICE CO..

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 $10,160.38.

What is the period of performance?

Start: 2023-04-01. End: 2025-09-30.

What is the historical spending trend for UPS shipping services with the VA?

Historical spending data for UPS shipping services with the VA is not provided in this specific award notice. However, the current award of $101.6 million over 913 days suggests a significant and ongoing need for these services. Analyzing past contract values and durations would offer a clearer picture of the long-term financial commitment and potential for cost escalation or savings.

What are the key performance indicators (KPIs) for this contract, and how is UPS's performance being measured?

The provided data does not detail the specific Key Performance Indicators (KPIs) or the performance measurement methodology for this UPS shipping services contract. Typically, such contracts would include metrics related to on-time delivery rates, package condition upon arrival, tracking accuracy, and customer service responsiveness. The VA's contract management team would be responsible for monitoring these KPIs to ensure service quality and compliance.

Are there any alternative shipping providers that could offer comparable services at a lower cost?

The contract was awarded through 'full and open competition after exclusion of sources,' which implies that multiple bids were likely considered. While UPS was selected, the competitive nature of the process suggests that other providers were evaluated. To definitively answer if alternatives could offer lower costs, a post-award analysis of the bidding process and market rates for similar services would be necessary.

Industry Classification

NAICS: Transportation and Warehousing › Couriers and Express Delivery Services › Couriers and Express Delivery Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › ADMINISTRATIVE SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1400 N HURSTBOURNE PKWY, LOUISVILLE, KY, 40223

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $15,416

Exercised Options: $10,160

Current Obligation: $10,160

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HTC71123DC025

IDV Type: IDC

Timeline