DOJ awards $141M contract for worldwide delivery services to Federal Express Corporation

Contract Overview

Contract Amount: $14,100 ($14.1K)

Contractor: Federal Express Corporation

Awarding Agency: Department of Justice

Start Date: 2025-10-01

End Date: 2026-09-30

Contract Duration: 364 days

Daily Burn Rate: $39/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FED-EX: WORLDWIDE DELIVERY SERVICES HEALTH SERVICES DOJ CONTRACT: 15JPSS25D00000293 DOS: 10/1/25- 9/30/26

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20001

State: District of Columbia Government Spending

Plain-Language Summary

Department of Justice obligated $14,100 to FEDERAL EXPRESS CORPORATION for work described as: FED-EX: WORLDWIDE DELIVERY SERVICES HEALTH SERVICES DOJ CONTRACT: 15JPSS25D00000293 DOS: 10/1/25- 9/30/26 Key points: 1. Contract awarded for essential courier and express delivery services. 2. Duration of the contract is one year, with a start date of October 1, 2025. 3. The contract is a Firm Fixed Price type, indicating predictable costs. 4. Services are required for the Federal Prison System / Bureau of Prisons. 5. The contract was not competed, raising questions about potential cost savings. 6. The North American Industry Classification System (NAICS) code is 492110 for Couriers and Express Delivery Services.

Value Assessment

Rating: fair

The contract value of $141 million for one year of worldwide delivery services appears substantial. Without specific performance metrics or comparisons to similar contracts for the Bureau of Prisons, it is difficult to definitively assess value for money. The lack of competition suggests potential for higher costs than might be achieved in a competitive bidding process. Benchmarking against industry rates for large-scale, global logistics would be necessary for a more precise valuation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This approach bypasses the standard competitive bidding process, which typically allows multiple vendors to propose solutions and prices. While sole-source awards can be justified in specific circumstances, they limit the government's ability to explore a wider range of options and potentially secure more favorable pricing through open competition.

Taxpayer Impact: Taxpayers may not be receiving the best possible price for these essential delivery services due to the absence of a competitive bidding process. The government may have missed opportunities to negotiate lower rates or explore innovative, cost-effective solutions offered by other qualified vendors.

Public Impact

The Federal Prison System / Bureau of Prisons will benefit from reliable and timely delivery of mail, packages, and other critical items. Essential operational functions of correctional facilities nationwide and potentially overseas will be supported. The contract ensures the continuity of communication and logistics necessary for inmate services and administrative operations. Workforce implications are minimal for the government, as the service provider is responsible for delivery personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to inflated costs for taxpayers.
Absence of competitive bidding limits exploration of potentially more cost-effective solutions.
Sole-source awards can sometimes indicate a lack of market research or urgency that may not be fully justified.

Positive Signals

Federal Express is a well-established provider with extensive global infrastructure.
Firm Fixed Price contract provides cost certainty for the duration of the award.
The contract supports critical functions of the Bureau of Prisons.

Sector Analysis

The contract falls within the broader logistics and transportation sector, specifically focusing on courier and express delivery services. This is a mature market with numerous established players, including Federal Express. The market size for government-wide logistics and delivery services is significant, with agencies relying heavily on these services for operational continuity. Benchmarking against other large federal contracts for similar services would reveal if this award is within typical spending ranges for the scale and scope of operations.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'ss' being false. Federal Express Corporation is a large business. There is no explicit information provided regarding subcontracting plans for small businesses. Without such provisions, the direct impact on the small business ecosystem for this specific contract is likely minimal, though Federal Express may engage small businesses in its broader supply chain.

Oversight & Accountability

Oversight for this contract would primarily reside with the contracting officers and program managers within the Department of Justice, specifically the Bureau of Prisons. Accountability measures are typically embedded in the contract terms and conditions, including performance standards and delivery requirements. Transparency is limited due to the sole-source nature of the award; however, contract award data is publicly available through federal procurement databases. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

General Services Administration (GSA) Federal Supply Schedule contracts for logistics and transportation
Department of Defense (DoD) logistics and transportation contracts
US Postal Service (USPS) services contracts

Risk Flags

Lack of Competition
Potential for Overpricing
Limited Vendor Options

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $14,100 to FEDERAL EXPRESS CORPORATION. FED-EX: WORLDWIDE DELIVERY SERVICES HEALTH SERVICES DOJ CONTRACT: 15JPSS25D00000293 DOS: 10/1/25- 9/30/26

Who is the contractor on this award?

The obligated recipient is FEDERAL EXPRESS CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Justice (Federal Prison System / Bureau of Prisons).

What is the total obligated amount?

The obligated amount is $14,100.

What is the period of performance?

Start: 2025-10-01. End: 2026-09-30.

What is the historical spending pattern for worldwide delivery services by the Bureau of Prisons?

Analyzing historical spending data for worldwide delivery services by the Bureau of Prisons is crucial for context. Without access to specific historical contract data for this agency, we can infer that consistent reliance on such services is likely due to the distributed nature of correctional facilities and the need for secure, timely transport of sensitive materials. If previous contracts were also sole-sourced or awarded to Federal Express, it might indicate a long-standing relationship or a perceived lack of viable alternatives. Conversely, if past contracts were competed, the current sole-source award warrants closer scrutiny regarding justification and potential cost implications compared to previous competitive awards.

How does the pricing of this contract compare to similar federal delivery service contracts?

Direct comparison of pricing for this $141 million contract to similar federal delivery service contracts is challenging without detailed service level agreements and specific delivery volumes. However, the fact that this contract was not competed is a significant indicator. Competitive solicitations typically result in lower prices due to market forces and vendor innovation. A sole-source award, especially for a large sum, suggests that the government may not be achieving the most cost-effective rates achievable in a competitive environment. Benchmarking against GSA schedules or other agency contracts for comparable express delivery services, adjusted for volume and geographic scope, would be necessary to assess potential price discrepancies.

What are the specific risks associated with a sole-source award for critical delivery services?

The primary risk associated with a sole-source award for critical delivery services is the potential for inflated costs due to the lack of competition. Without competing bids, the government loses the opportunity to leverage market dynamics to secure the best possible pricing and service terms. Another risk is vendor complacency; a sole-source provider may have less incentive to innovate or improve service quality compared to a vendor facing competitive pressure. Furthermore, reliance on a single provider can create vulnerability if that provider experiences operational disruptions, potentially impacting the essential functions of the Bureau of Prisons.

What performance metrics are likely being used to evaluate Federal Express's service delivery under this contract?

While specific performance metrics are not detailed in the provided data, typical evaluations for courier and express delivery services contracts include on-time delivery rates, package integrity (damage/loss rates), tracking accuracy, customer service responsiveness, and adherence to security protocols. For the Bureau of Prisons, metrics related to the secure handling and timely delivery of sensitive inmate communications, legal documents, and supplies would be paramount. The contract likely includes clauses for service level agreements (SLAs) with defined penalties or remedies for non-performance, ensuring accountability despite the sole-source nature of the award.

What is the justification for awarding this contract on a sole-source basis?

The justification for awarding this contract on a sole-source basis is not provided in the data. Typically, sole-source awards are justified under specific circumstances outlined in federal acquisition regulations, such as when only one responsible source can provide the required services, there is a compelling urgency, or the acquisition is for a follow-on effort to a previously competed contract where a new competition is not feasible. For a service like worldwide delivery, justifications might include unique capabilities, existing infrastructure integration, or specific security requirements that only Federal Express can meet. However, without the official justification document, it remains an assumption.

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: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Fedex Corp

Address: 3610 HACKS CROSS RD, MEMPHIS, TN, 38125

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

Financial Breakdown

Contract Ceiling: $14,100

Exercised Options: $14,100

Current Obligation: $14,100

Actual Outlays: $4,041

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NOT OBTAINED - WAIVED

Parent Contract

Parent Award PIID: 15JPSS25D00000293

IDV Type: IDC

Timeline