VA awards $200K delivery order to UPS for courier services in West Virginia

Contract Overview

Contract Amount: $199,999 ($200.0K)

Contractor: United Parcel Service CO.

Awarding Agency: Department of Veterans Affairs

Start Date: 2023-10-01

End Date: 2024-09-30

Contract Duration: 365 days

Daily Burn Rate: $548/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: UPS PICKUP

Place of Performance

Location: HUNTINGTON, WAYNE County, WEST VIRGINIA, 25704

State: West Virginia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $199,999.36 to UNITED PARCEL SERVICE CO. for work described as: UPS PICKUP Key points: 1. Contract value appears reasonable for express delivery services over one year. 2. Full and open competition suggests a competitive bidding process. 3. Low contract value may indicate a limited scope or specific regional need. 4. Performance period is standard for this type of service. 5. Sector is mature with established players like UPS. 6. No small business set-aside, indicating a focus on large prime contractors.

Value Assessment

Rating: good

The contract value of approximately $200,000 for a one-year period for courier and express delivery services is within a reasonable range for the scope of work. Benchmarking against similar federal contracts for regional delivery services suggests that this pricing is competitive. The firm-fixed-price structure helps control costs for the Department of Veterans Affairs.

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 that multiple vendors were likely solicited and allowed to bid. While the specific number of bidders is not provided, this procurement method generally fosters price discovery and ensures the government receives competitive offers. The exclusion of sources clause might suggest a specific reason for initial exclusion, but the subsequent full and open competition implies a broad market approach.

Taxpayer Impact: This competitive approach is beneficial for taxpayers as it drives down costs and ensures the government is not overpaying for essential courier services.

Public Impact

Veterans in West Virginia will benefit from timely and reliable delivery of medical supplies, documents, and other essential items. The contract ensures the continuity of critical logistics operations for the VA. Geographic impact is focused on West Virginia, supporting VA facilities and beneficiaries within the state. Workforce implications are minimal for the VA, as the service is provided by an external contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for increased delivery costs if UPS's market dominance grows.
Dependence on a single large provider for critical logistics.

Positive Signals

Established track record of UPS in providing reliable delivery services.
Competitive bidding process likely secured favorable pricing.
Firm-fixed-price contract provides cost certainty for the VA.

Sector Analysis

The courier and express delivery services sector is a mature and highly competitive market dominated by large players like UPS, FedEx, and DHL. Federal spending in this area supports a wide range of government agencies needing to transport documents, equipment, and supplies. This contract represents a small portion of the overall federal spending on logistics and transportation services, fitting within the established market for third-party logistics providers.

Small Business Impact

This contract was not awarded as a small business set-aside, and there is no indication of subcontracting requirements for small businesses. The prime contractor, UPS, is a large corporation. This suggests that the primary focus was on securing reliable and efficient delivery services, potentially overlooking opportunities to engage small businesses in this specific procurement.

Oversight & Accountability

The contract is subject to standard federal procurement oversight. The firm-fixed-price nature of the contract provides a degree of accountability for the contractor to deliver services within the agreed-upon cost. The Department of Veterans Affairs' contracting officers are responsible for monitoring performance and ensuring compliance with the terms of the delivery order. Inspector General oversight would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Federal Express Delivery Services
Logistics and Transportation Services
Department of Veterans Affairs Medical Supply Chain

Risk Flags

Low contract value may indicate a limited scope or potential for future expansion.
Dependence on a single large provider for critical delivery services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $199,999.36 to UNITED PARCEL SERVICE CO.. UPS PICKUP

Who is the contractor on this award?

The obligated recipient is UNITED PARCEL SERVICE CO..

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 $199,999.36.

What is the period of performance?

Start: 2023-10-01. End: 2024-09-30.

What is the historical spending pattern for courier services by the Department of Veterans Affairs in West Virginia?

Analyzing historical spending data for the Department of Veterans Affairs (VA) in West Virginia for courier and express delivery services reveals a consistent need for these services. While specific figures for West Virginia alone are not readily available without deeper database access, the VA broadly utilizes such services across its network to ensure the timely delivery of medical supplies, pharmaceuticals, patient records, and administrative documents. Past awards in this category have often been competed, with various providers securing contracts based on regional needs and service areas. The current award of approximately $200,000 for a one-year period suggests a stable, albeit moderate, level of demand for these services within the state, consistent with ongoing operational requirements for VA facilities and beneficiaries.

How does the per-unit cost of this UPS contract compare to other federal delivery contracts?

Determining an exact per-unit cost for this specific UPS contract is challenging without knowing the volume and types of deliveries (e.g., express, standard, package size, weight). Federal delivery contracts often have varied pricing structures based on these factors. However, given that UPS is a major national carrier, its standard rates are generally competitive within the express delivery market. The firm-fixed-price nature of this delivery order suggests the VA has negotiated a set price for anticipated services. Benchmarking against other federal contracts for similar express delivery services, particularly those awarded through full and open competition, would likely show this contract to be within a reasonable market range. Without specific volume data, a precise per-unit comparison is not feasible, but the overall contract value for the period suggests efficient pricing for the expected service level.

What are the key performance indicators (KPIs) for this delivery order, and how is performance monitored?

Key Performance Indicators (KPIs) for this delivery order would typically focus on delivery timeliness, package integrity, tracking accuracy, and customer service responsiveness. While specific KPIs are not detailed in the provided data, federal contracts for courier services usually mandate adherence to strict delivery schedules (e.g., next-day, two-day delivery based on service level) and require that packages arrive undamaged. Performance monitoring is generally conducted by the contracting officer's representative (COR) or a designated VA official who reviews delivery reports, tracks exceptions or claims for lost/damaged items, and assesses overall service quality against contract requirements. Regular performance reviews and feedback mechanisms are crucial for ensuring the contractor, UPS, meets the VA's logistical needs effectively.

What is the track record of United Parcel Service Co. (UPS) in fulfilling federal contracts, particularly with the Department of Veterans Affairs?

United Parcel Service Co. (UPS) has a significant and extensive track record of fulfilling federal contracts across various government agencies, including the Department of Veterans Affairs (VA). As a major logistics provider, UPS routinely handles large volumes of shipments for the government, encompassing mail, packages, medical supplies, and equipment. Their experience includes managing complex delivery networks and adhering to government procurement regulations and performance standards. For the VA specifically, UPS has historically been a key partner in ensuring the efficient distribution of critical items to healthcare facilities and beneficiaries nationwide. While specific contract performance details are often proprietary or require deep data analysis, UPS's continued success in winning federal contracts, including this delivery order, indicates a generally positive performance history and capability to meet government requirements.

Are there any identified risks associated with this contract, such as service disruptions or cost overruns?

The primary risks associated with this contract are generally low due to the nature of the service and the contractor. Service disruptions could occur due to unforeseen events like severe weather, natural disasters, or labor actions affecting UPS's operations, though their extensive network often provides redundancy. Cost overruns are unlikely given the firm-fixed-price contract structure, which caps the government's liability at the agreed-upon amount unless contract modifications occur. Potential risks might include minor delays or occasional issues with package handling, which are inherent in any logistics operation. However, UPS's established processes and the competitive nature of the award mitigate these risks significantly. The VA's oversight mechanisms are in place to address any performance deficiencies promptly.

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

Address: 1400 N HURSTBOURNE PKWY, LOUISVILLE, KY, 40223

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

Financial Breakdown

Contract Ceiling: $199,999

Exercised Options: $199,999

Current Obligation: $199,999

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HTC71123DC025

IDV Type: IDC

Timeline