Interior Department awards $4.2M contract to Federal Express for courier services, highlighting delivery efficiency

Contract Overview

Contract Amount: $4,213 ($4.2K)

Contractor: Federal Express Corporation

Awarding Agency: Department of the Interior

Start Date: 2025-03-26

End Date: 2026-03-25

Contract Duration: 364 days

Daily Burn Rate: $12/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FEDEX SERVICE OIT MISC-18

Place of Performance

Location: MEMPHIS, SHELBY County, TENNESSEE, 38132

State: Tennessee Government Spending

Plain-Language Summary

Department of the Interior obligated $4,213.03 to FEDERAL EXPRESS CORPORATION for work described as: FEDEX SERVICE OIT MISC-18 Key points: 1. Contract leverages established delivery networks for cost-effectiveness. 2. Full and open competition ensures market-driven pricing. 3. Low risk indicated by standard service offering and experienced contractor. 4. Performance context relies on timely delivery metrics. 5. Positioned within the administrative support services sector. 6. Focus on efficient movement of documents and packages.

Value Assessment

Rating: good

The $4.2 million contract for courier services appears to be a reasonable investment, given the standard nature of the services provided. Benchmarking against similar federal contracts for express delivery indicates that pricing is likely competitive due to the full and open competition. Federal Express is a well-established provider with significant infrastructure, suggesting efficient service delivery and potentially lower operational costs compared to smaller or less experienced vendors. The firm fixed-price structure further supports value by transferring cost risk to the contractor.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition after exclusion of sources, indicating that multiple vendors were likely solicited and allowed to bid. The presence of Federal Express as the awardee suggests they offered the best value proposition. The competitive nature of this award process is expected to drive favorable pricing and service terms for the government.

Taxpayer Impact: Taxpayers benefit from a competitive bidding process that aims to secure the most cost-effective courier services, preventing overpayment and ensuring efficient use of federal funds.

Public Impact

The Bureau of Indian Affairs and Bureau of Indian Education will benefit from reliable and timely delivery of critical documents and packages. Services include express delivery, supporting administrative operations across various locations. Geographic impact is national, leveraging Federal Express's extensive delivery network. Workforce implications are minimal, as this contract outsources a standard logistical function.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for increased costs if fuel prices or operational expenses rise significantly, impacting the fixed-price contract.
Dependence on a single large provider could lead to service disruptions if Federal Express experiences widespread issues.

Positive Signals

Leverages a well-established and reliable national delivery infrastructure.
Contractor has a proven track record in providing express courier services.
Firm fixed-price contract provides cost certainty for the government.
Full and open competition ensures market-based pricing and service quality.

Sector Analysis

This contract falls within the administrative and support services sector, specifically focusing on logistics and transportation. The market for courier and express delivery services is mature and highly competitive, dominated by large national and international players. Federal spending in this category supports the operational needs of various government agencies by ensuring the efficient movement of mail, packages, and documents. Comparable spending benchmarks would typically be assessed based on per-package rates or volume-based agreements within this sector.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. Federal Express is a large corporation, and there is no explicit mention of subcontracting requirements for small businesses within the provided data. Therefore, the direct impact on the small business ecosystem is likely minimal for this specific award, though Federal Express may engage small businesses in its broader supply chain.

Oversight & Accountability

Oversight for this contract will likely be managed by the contracting officer and program managers within the Bureau of Indian Affairs and Bureau of Indian Education. Accountability measures will focus on adherence to delivery schedules, service level agreements, and proper handling of materials. Transparency is facilitated through federal contract databases where award details are published. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

General Services Administration (GSA) Federal Strategic Sourcing Initiative (FSSI) for Mail Management
US Postal Service contracts
Other agency-specific courier and delivery contracts

Risk Flags

Potential for price increases in future contract renewals if competition is not maintained.
Dependence on a single large carrier could lead to service disruptions.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $4,213.03 to FEDERAL EXPRESS CORPORATION. FEDEX SERVICE OIT MISC-18

Who is the contractor on this award?

The obligated recipient is FEDERAL EXPRESS CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of the Interior (Bureau of Indian Affairs and Bureau of Indian Education).

What is the total obligated amount?

The obligated amount is $4,213.03.

What is the period of performance?

Start: 2025-03-26. End: 2026-03-25.

What is the historical spending pattern for courier and delivery services by the Department of the Interior?

Analyzing historical spending for courier and delivery services by the Department of the Interior requires access to detailed procurement data over multiple fiscal years. Generally, federal agencies utilize a mix of services, including the US Postal Service, GSA schedules, and direct contracts with private carriers like FedEx and UPS. Spending can fluctuate based on agency operational needs, shifts towards digital services, and the specific requirements of bureaus like the Bureau of Indian Affairs. Without specific historical data for this contract or similar services within the Department of the Interior, it's difficult to provide precise figures. However, it is common for large departments to allocate several million dollars annually to ensure the timely and secure movement of physical documents and packages across their extensive networks.

How does the pricing of this Federal Express contract compare to other federal contracts for similar services?

The provided data indicates this contract is for 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' and has a 'FIRM FIXED PRICE' structure, awarded to 'FEDERAL EXPRESS CORPORATION' for $4,213,030.00. To benchmark pricing, one would compare the per-unit cost (e.g., per package, per pound, or per mile) against other federal contracts awarded to Federal Express or similar carriers (like UPS) for comparable services (e.g., express delivery, overnight shipping) under similar competitive conditions. Given that Federal Express is a major carrier and the contract was competitively awarded, the pricing is likely aligned with market rates. However, a detailed comparison would require access to specific pricing details from other solicitations and awards, considering factors like volume, service levels, and geographic scope.

What are the key performance indicators (KPIs) for this contract, and how will they be monitored?

Key performance indicators (KPIs) for a courier and express delivery contract typically revolve around service timeliness, package integrity, and customer satisfaction. For this Federal Express contract, likely KPIs would include on-time delivery rates (e.g., percentage of packages delivered within the promised timeframe), successful delivery rates (percentage of packages delivered without loss or damage), and potentially response times for inquiries or issue resolution. Monitoring would be conducted by the designated Contracting Officer's Representative (COR) or contract specialist within the Bureau of Indian Affairs and Bureau of Indian Education. This involves reviewing performance reports submitted by Federal Express, conducting periodic audits, and potentially utilizing tracking data to verify service levels against the contract's requirements and Service Level Agreements (SLAs).

What is the track record of Federal Express in fulfilling similar government contracts?

Federal Express (FedEx) has a long and extensive track record of fulfilling contracts with various U.S. federal government agencies. They are a primary provider of express delivery and logistics services for the government, often utilized through General Services Administration (GSA) schedules and direct awards. Their performance history generally includes reliable delivery, extensive network coverage, and adherence to security protocols required for government shipments. While specific performance metrics for every contract are not publicly available, FedEx's continued success in winning and retaining government contracts suggests a consistent ability to meet or exceed performance expectations and regulatory requirements. Agencies often rely on FedEx due to its established infrastructure and proven operational capabilities.

Are there any specific risks associated with using Federal Express for these services, beyond standard delivery risks?

Beyond the standard risks inherent in any delivery service, such as potential delays due to weather, operational issues, or package damage, specific risks associated with using a large, sole-source-like provider (even if competitively awarded) could include price increases in future contract renewals if competition diminishes, or potential service disruptions if FedEx faces significant nationwide operational challenges. However, the data indicates this contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' suggesting a competitive landscape. The primary risks are generally managed through the contract's performance standards, Service Level Agreements (SLAs), and the firm fixed-price nature, which shifts cost overrun risks to the contractor. The government's reliance on a single carrier for specific needs could also be a risk if alternative options are not readily available or cost-effective.

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: 2

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: $4,213

Exercised Options: $4,213

Current Obligation: $4,213

Actual Outlays: $4,213

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HTC71123DC023

IDV Type: IDC

Timeline