Federal Express secures $5M contract for overnight domestic delivery services, awarded by the Department of the Interior

Contract Overview

Contract Amount: $5,000 ($5.0K)

Contractor: Federal Express Corporation

Awarding Agency: Department of the Interior

Start Date: 2026-04-02

End Date: 2027-03-31

Contract Duration: 363 days

Daily Burn Rate: $14/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: SNDO FEDEX OVERNIGHT DOMESTIC SERVICE

Place of Performance

Location: LAS VEGAS, CLARK County, NEVADA, 89130

State: Nevada Government Spending

Plain-Language Summary

Department of the Interior obligated $5,000 to FEDERAL EXPRESS CORPORATION for work described as: SNDO FEDEX OVERNIGHT DOMESTIC SERVICE Key points: 1. Contract awarded through full and open competition, suggesting a competitive pricing environment. 2. The contract duration of 363 days indicates a need for ongoing, reliable delivery services. 3. Fixed-price contract type helps mitigate cost overrun risks for the government. 4. The award to a single vendor, Federal Express Corporation, highlights market concentration in express delivery. 5. This contract supports essential operational needs for the Bureau of Land Management. 6. The service area covers Nevada, indicating a specific geographic focus for delivery.

Value Assessment

Rating: good

The contract value of $5 million for a one-year period for overnight domestic delivery services appears reasonable given the scale and nature of operations for a federal agency. Benchmarking against similar contracts for express delivery services would provide a more precise value-for-money assessment. However, the fixed-price structure generally indicates a commitment to cost control.

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,' which implies that while the competition was broad, specific exclusions were made. This suggests a deliberate decision to allow a wide range of potential bidders while potentially having some pre-qualification criteria. The number of bidders is not specified, but the 'full and open' nature generally promotes price discovery and competitive offers.

Taxpayer Impact: This competitive approach is beneficial for taxpayers as it is designed to solicit the best possible pricing and service offerings from multiple qualified vendors, preventing potential price gouging and ensuring efficient use of public funds.

Public Impact

Federal Express Corporation benefits through a significant contract award. The Bureau of Land Management and other Department of the Interior entities will receive reliable overnight domestic delivery services. The geographic impact is focused on Nevada, supporting operations within that state. Workforce implications include potential utilization of Federal Express's existing logistics network and personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for limited competition if only a few large carriers can meet the specific requirements.
Reliance on a single vendor could pose risks if service disruptions occur.
The 'after exclusion of sources' clause warrants further investigation into the specific reasons for exclusion.

Positive Signals

Awarded through full and open competition, indicating a robust bidding process.
Fixed-price contract type provides cost certainty.
Federal Express is a well-established provider with a proven track record in logistics.

Sector Analysis

The contract falls within the 'Couriers and Express Delivery Services' sector, a critical component of the broader logistics and transportation industry. This sector is characterized by high volume, time-sensitive deliveries, and significant infrastructure investment. Federal spending in this area supports government operations across various agencies, ensuring timely delivery of documents, supplies, and equipment. Market size is substantial, with numerous players ranging from large global carriers to smaller regional providers.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract. As a large contract likely awarded to a major carrier, the primary impact on small businesses would be through potential subcontracting opportunities, if Federal Express chooses to engage them. However, without specific subcontracting goals or requirements, the direct benefit to the small business ecosystem may be limited.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of the Interior's contracting officers and the Bureau of Land Management's program managers. Accountability measures are embedded in the firm fixed-price contract terms, requiring delivery according to specified timelines and quality standards. Transparency is generally maintained through federal contract databases, though specific performance metrics and oversight reports may not always be publicly accessible.

Related Government Programs

General Services Administration (GSA) Schedule Contracts for Shipping and Distribution
Department of Defense Logistics and Transportation Services
US Postal Service Contracts
Federal Express Corporation Contracts

Risk Flags

Potential for limited competition if exclusions significantly reduce bidder pool.
Service disruption risk due to reliance on a single vendor.
Need for ongoing monitoring of performance and pricing.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $5,000 to FEDERAL EXPRESS CORPORATION. SNDO FEDEX OVERNIGHT DOMESTIC SERVICE

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 Land Management).

What is the total obligated amount?

The obligated amount is $5,000.

What is the period of performance?

Start: 2026-04-02. End: 2027-03-31.

What is Federal Express Corporation's track record with similar federal contracts?

Federal Express Corporation has a long history of contracting with the U.S. federal government for a wide range of logistics and delivery services. They are a primary provider for many agencies, including the Department of Defense, GSA, and various civilian departments. Their track record typically involves handling high volumes of time-sensitive shipments, often under firm-fixed-price agreements. Past performance data, available through sources like the Federal Procurement Data System (FPDS), would detail their success rates, any past disputes or performance issues, and the types of services rendered. Generally, as a major carrier, they are expected to meet stringent delivery standards and security protocols required by government contracts.

How does the $5 million value compare to similar overnight delivery contracts for federal agencies?

The $5 million value for a one-year contract for overnight domestic delivery services by the Department of the Interior appears to be within a reasonable range for a federal agency of its size and scope. Larger agencies or those with more extensive geographic requirements might award contracts in the tens or hundreds of millions. Smaller agencies or those with more limited needs might have contracts in the hundreds of thousands. The specific value is influenced by factors such as the volume of packages, the geographic coverage (in this case, Nevada), the required speed of delivery, and the level of service (e.g., tracking, insurance). Benchmarking against contracts from the GSA's Multiple Award Schedule (MAS) for transportation and logistics services would provide a more precise comparison.

What are the primary risks associated with this contract for the government?

The primary risks associated with this contract include service disruptions due to weather, operational issues at Federal Express, or labor disputes, which could impact the timely delivery of critical documents or supplies. There's also a risk of price increases in future contract renewals if competition becomes less robust or if market conditions change significantly. Over-reliance on a single vendor, even a large one, can reduce leverage in negotiations and create dependency. Furthermore, ensuring compliance with all federal regulations, data security, and handling sensitive materials adds layers of risk that require diligent oversight.

How effective is the 'Full and Open Competition After Exclusion of Sources' method for ensuring value?

The 'Full and Open Competition After Exclusion of Sources' method aims to balance broad competition with specific needs. It allows any responsible source to submit an offer but permits the exclusion of certain sources based on specific, justifiable criteria (e.g., national security, past performance issues, or unique capabilities). This can be effective if the exclusions are well-defined and do not unduly restrict competition. If the exclusions are minimal and the remaining pool of bidders is robust, it can lead to competitive pricing and good value. However, if the exclusions significantly limit the number of potential bidders, it could reduce price discovery and potentially lead to higher costs compared to unrestricted full and open competition.

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

Historical spending data for courier and express delivery services by the Department of the Interior (DOI) would reveal trends in their reliance on such services. Analyzing past contracts, including their values, durations, awarded vendors, and competition levels, would indicate whether spending has been consistent, increasing, or decreasing. It would also show if there's a pattern of awarding contracts to specific large carriers like Federal Express or if they utilize a broader range of providers. Understanding these patterns helps in assessing the current $5 million award in the context of the DOI's long-term logistics needs and budget allocation for these services.

What are the implications of a 'Firm Fixed Price' contract type for this service?

A 'Firm Fixed Price' (FFP) contract type is generally advantageous for the government when the scope of work is well-defined and the risks of cost overruns are manageable. For overnight delivery services, the primary cost drivers (e.g., fuel, labor, aircraft operations) are relatively predictable, making FFP suitable. This contract structure shifts the risk of cost increases to the contractor, Federal Express Corporation. The government pays the agreed-upon price regardless of the contractor's actual costs. This provides budget certainty and simplifies financial management. However, it requires careful negotiation of the price to ensure it reflects fair market value and includes adequate profit for the contractor without being excessive.

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

Solicitation ID: 0044042081

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: $5,000

Exercised Options: $5,000

Current Obligation: $5,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HTC71123DC023

IDV Type: IDC

Timeline