DOJ awards $13.1M delivery order to Federal Express for courier services, bypassing competition

Contract Overview

Contract Amount: $13,120 ($13.1K)

Contractor: Federal Express Corporation

Awarding Agency: Department of Justice

Start Date: 2024-10-01

End Date: 2025-09-30

Contract Duration: 364 days

Daily Burn Rate: $36/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: DOJ'S OVERARCHING ORDER OFF OF DOD'S NGDS CONTRACT (HTC711-23-D-C023)

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 $13,119.65 to FEDERAL EXPRESS CORPORATION for work described as: DOJ'S OVERARCHING ORDER OFF OF DOD'S NGDS CONTRACT (HTC711-23-D-C023) Key points: 1. Significant contract value awarded to a single, well-known provider. 2. Lack of competition raises questions about price discovery and potential overpayment. 3. Reliance on a sole provider for critical delivery services presents a risk. 4. The IT and logistics sector sees substantial spending, but this specific award lacks transparency.

Value Assessment

Rating: questionable

The contract is a delivery order under an existing IDIQ, making direct price comparison difficult. However, the lack of competition for this specific order suggests potential for suboptimal pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers compared to a competitive process.

Taxpayer Impact: The absence of competition may result in higher costs for the Department of Justice, impacting taxpayer funds.

Public Impact

Taxpayers may be paying more than necessary due to the lack of competitive bidding. Essential delivery services are consolidated under one provider, potentially impacting service availability if issues arise. The decision to not compete this order warrants further scrutiny regarding justification and fairness.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Potential for inflated pricing
Sole-source reliance

Positive Signals

Established provider with proven track record
Clear service delivery period

Sector Analysis

This award falls within the broad courier and express delivery services sector, which is essential for government operations. Spending in this area is typically driven by operational needs, but competitive bidding is crucial for cost efficiency.

Small Business Impact

The awardee is a large corporation, and there is no indication that small businesses were involved or considered in this specific delivery order.

Oversight & Accountability

The non-competitive nature of this award raises questions about the oversight processes that led to this decision. Further review is needed to ensure accountability and adherence to procurement regulations.

Related Government Programs

Couriers and Express Delivery Services
Department of Justice Contracting
Offices, Boards and Divisions Programs

Risk Flags

Non-competitive award
Potential for price inflation
Lack of transparency in award justification
Sole-source dependency

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $13,119.65 to FEDERAL EXPRESS CORPORATION. DOJ'S OVERARCHING ORDER OFF OF DOD'S NGDS CONTRACT (HTC711-23-D-C023)

Who is the contractor on this award?

The obligated recipient is FEDERAL EXPRESS CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Justice (Offices, Boards and Divisions).

What is the total obligated amount?

The obligated amount is $13,119.65.

What is the period of performance?

Start: 2024-10-01. End: 2025-09-30.

What was the justification for not competing this delivery order, given the significant value?

The justification for not competing this delivery order is not provided in the data. Typically, sole-source awards require a documented justification, such as a critical need, lack of available sources, or a specific technical requirement. Without this information, it's difficult to assess the validity of the decision and its impact on value for money.

What are the risks associated with awarding a large delivery order on a sole-source basis?

The primary risks include paying a higher price than could be achieved through competition, reduced innovation from the lack of market pressure, and potential over-reliance on a single vendor. This can also set a precedent for future non-competitive awards, diminishing overall procurement efficiency and fairness.

How does this award align with the government's goals for efficient and cost-effective spending?

Awarding a significant contract without competition generally runs counter to the goal of achieving cost-effective spending. While the provider may be reputable, the absence of competitive bids suggests that the government may not be securing the best possible price or terms, potentially leading to inefficient use of taxpayer funds.

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: $18,261

Exercised Options: $18,261

Current Obligation: $13,120

Actual Outlays: $13,127

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NOT OBTAINED - WAIVED

Parent Contract

Parent Award PIID: 15JPSS24D00000254

IDV Type: IDC

Timeline