VA Awards $13M for Mailing Services to Federal Express, Highlighting Competition and Delivery Efficiency

Contract Overview

Contract Amount: $13,000,000 ($13.0M)

Contractor: Federal Express Corporation

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-01-01

End Date: 2026-12-31

Contract Duration: 729 days

Daily Burn Rate: $17.8K/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: MAILING SERVICES

Place of Performance

Location: HINES, COOK County, ILLINOIS, 60141

State: Illinois Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $13.0 million to FEDERAL EXPRESS CORPORATION for work described as: MAILING SERVICES Key points: 1. Significant contract value of $13 million for essential mailing services. 2. Federal Express Corporation secured the award, indicating strong incumbent performance or competitive advantage. 3. Risk appears moderate given the established provider and fixed-price contract. 4. Spending falls within the 'Couriers and Express Delivery Services' sector.

Value Assessment

Rating: good

The $13 million award for a 729-day duration suggests a competitive pricing strategy. Benchmarking against similar federal contracts for express delivery services would provide further insight into value.

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, indicating a robust price discovery process. This method likely ensured competitive pricing for the government.

Taxpayer Impact: The competitive award is expected to yield favorable pricing, maximizing taxpayer value for essential mailing and courier services.

Public Impact

Ensures timely delivery of critical documents and supplies for VA operations. Supports veterans' access to services by facilitating communication and delivery. Maintains operational continuity for the Department of Veterans Affairs.

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 needs.

Positive Signals

Competitive award process.
Fixed-price contract structure.
Clear performance period.

Sector Analysis

The Department of Veterans Affairs is a major consumer of courier and express delivery services. This $13 million contract aligns with typical spending for such services, especially for large agencies requiring reliable logistics.

Small Business Impact

The data does not indicate specific provisions or set-asides for small businesses in this contract award. Further analysis would be needed to determine small business participation.

Oversight & Accountability

The contract was awarded under full and open competition, suggesting adherence to procurement regulations. Ongoing performance monitoring by the VA will be crucial for accountability.

Related Government Programs

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

Risk Flags

Potential for price escalation in future contract periods.
Over-reliance on a single, large provider.
Lack of specific small business participation noted.
Limited insight into detailed per-unit cost efficiency.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $13.0 million to FEDERAL EXPRESS CORPORATION. MAILING SERVICES

Who is the contractor on this award?

The obligated recipient is FEDERAL EXPRESS CORPORATION.

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 $13.0 million.

What is the period of performance?

Start: 2025-01-01. End: 2026-12-31.

What is the historical performance of Federal Express Corporation with the VA for similar services?

Historical performance data for Federal Express Corporation with the VA is not provided in this data. However, the agency's decision to award this contract suggests satisfaction with past performance or a strong competitive bid. Reviewing past performance metrics and any past issues would offer a more complete picture of reliability and service quality.

How does the per-unit cost of this contract compare to industry benchmarks for similar delivery volumes and service levels?

The provided data does not include per-unit cost details, making direct comparison difficult. The total contract value of $13 million over approximately two years suggests a significant volume of services. A detailed analysis of delivery types, volumes, and service levels would be required to benchmark against industry standards and assess cost-effectiveness.

What are the key performance indicators (KPIs) and service level agreements (SLAs) in place for this contract?

Specific Key Performance Indicators (KPIs) and Service Level Agreements (SLAs) are not detailed in the provided data. However, for a contract of this nature and value, it is standard practice for the VA to establish clear performance expectations regarding delivery times, package integrity, tracking capabilities, and customer service. These would be outlined in the contract's statement of work.

Industry Classification

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

Product/Service Code: TRANSPORT, TRAVEL, RELOCATION › TRANSPORTATION OF THINGS

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

Parent Company: Fedex Corp

Address: 2003 CORPORATE PLZ, MEMPHIS, TN, 38132

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

Financial Breakdown

Contract Ceiling: $28,500,000

Exercised Options: $13,000,000

Current Obligation: $13,000,000

Actual Outlays: $9,772,118

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HTC71123DC023

IDV Type: IDC

Timeline