VA awards $2.07M contract for courier services to Capital Courier Services, LLC

Contract Overview

Contract Amount: $2,067,729 ($2.1M)

Contractor: Capital Courier Services, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2020-06-27

End Date: 2025-06-26

Contract Duration: 1,825 days

Daily Burn Rate: $1.1K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 12

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: COURIER SERVICES

Place of Performance

Location: KENNESAW, COBB County, GEORGIA, 30144

State: Georgia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $2.1 million to CAPITAL COURIER SERVICES, LLC for work described as: COURIER SERVICES Key points: 1. Contract awarded for essential courier and delivery services. 2. Services are critical for supporting VA operations. 3. Contract duration of 5 years indicates a long-term need. 4. Firm Fixed Price contract type provides cost certainty. 5. Competition under SAP suggests a streamlined procurement process for smaller dollar values. 6. Small business status of the contractor is not explicitly stated, but the contract is not a set-aside. 7. Geographic coverage is focused on Georgia.

Value Assessment

Rating: good

The contract value of $2.07 million over five years for courier services appears reasonable given the duration and scope. Benchmarking against similar federal contracts for courier services would provide a more precise value-for-money assessment. The firm fixed price structure helps manage cost fluctuations. Without specific performance metrics or detailed cost breakdowns, a definitive assessment of exceptional value is difficult, but the pricing seems aligned with market expectations for such services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was competed under the Simplified Acquisition Procedures (SAP), which typically involves a limited number of bidders compared to full and open competition. While the exact number of bids received is not detailed, the 'COMPETED UNDER SAP' designation implies a streamlined process often used for acquisitions below certain thresholds. This approach can lead to faster award times but may not always yield the broadest range of offers.

Taxpayer Impact: For taxpayers, competition under SAP can offer a balance between efficient procurement and reasonable pricing. While it may not achieve the absolute lowest price possible through extensive competition, it generally ensures fair market value is obtained without the higher administrative costs associated with larger-scale competitive processes.

Public Impact

Benefits the Department of Veterans Affairs by ensuring timely delivery of essential documents and supplies. Services support the operational needs of VA facilities within Georgia. Impacts the efficiency of VA administrative and medical support functions. Potentially supports local jobs through the contractor's operations in Georgia.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition under SAP may not have secured the absolute best price.
Lack of detailed performance metrics makes assessing service quality challenging.
Geographic focus on Georgia limits broader economic impact.

Positive Signals

Firm Fixed Price contract provides cost predictability.
Long-term contract (5 years) offers stability for service provision.
Contractor is established to serve a specific regional need.

Sector Analysis

The courier and express delivery services sector is a vital component of the logistics industry, supporting government and commercial operations. Federal spending in this area is consistent, driven by the need for reliable transportation of documents, mail, and packages. This contract, valued at approximately $413,000 annually, fits within the typical range for specialized regional courier services. The North American Industry Classification System (NAICS) code 492110 confirms the specific industry focus.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses, nor does it explicitly mention subcontracting requirements for small businesses. While Capital Courier Services, LLC may be a small business itself, the procurement method (SAP) and lack of set-aside designation suggest it was competed more broadly within the simplified acquisition threshold. Further analysis would be needed to determine if small businesses were involved as subcontractors or if there was an opportunity missed for greater small business participation.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Veterans Affairs contracting officers and program managers. They are responsible for monitoring performance, ensuring compliance with contract terms, and approving payments. Transparency is facilitated through contract databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

General Services Administration (GSA) Schedules for Courier Services
US Postal Service contracts
Department of Defense courier services

Risk Flags

Potential for service disruption
Quality and timeliness of delivery
Limited competition may impact price optimization
Vendor dependency

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $2.1 million to CAPITAL COURIER SERVICES, LLC. COURIER SERVICES

Who is the contractor on this award?

The obligated recipient is CAPITAL COURIER SERVICES, LLC.

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 $2.1 million.

What is the period of performance?

Start: 2020-06-27. End: 2025-06-26.

What is the track record of Capital Courier Services, LLC with federal contracts?

Information regarding Capital Courier Services, LLC's specific track record with federal contracts is not detailed in the provided data. However, the award of this definitive contract by the Department of Veterans Affairs suggests a level of capability and compliance deemed sufficient for this requirement. To fully assess their track record, one would need to review their past performance on similar government contracts, including any reported issues, successes, or contract modifications. Analyzing their history with the VA and other agencies could reveal patterns in delivery timeliness, service quality, and adherence to contractual obligations. Without this historical performance data, it is difficult to definitively gauge their reliability and expertise beyond the current award.

How does the annual cost of this contract compare to similar federal courier service contracts?

The annual cost of this contract is approximately $413,545 ($2,067,729.14 / 5 years). Benchmarking this against similar federal courier service contracts requires access to a broader dataset of awards within the same NAICS code (492110) and for comparable service scopes (e.g., regional delivery, document transport). Contracts awarded through full and open competition or under GSA schedules might offer a more robust comparison point. However, contracts competed under Simplified Acquisition Procedures (SAP) can sometimes have different pricing dynamics. Generally, for regional courier services, this annual figure appears within a reasonable range, assuming the scope of services and geographic coverage are standard. A detailed comparison would involve analyzing contract size, duration, specific service level agreements, and the geographic areas served by other comparable contracts.

What are the primary risks associated with this courier services contract?

The primary risks associated with this courier services contract include potential disruptions in service delivery due to unforeseen events (e.g., weather, vehicle breakdowns, labor issues), which could impact the VA's operations. There's also a risk related to the quality and timeliness of deliveries, which could lead to administrative delays or operational inefficiencies within the VA. Given the competition was under SAP, there's a moderate risk that the pricing might not be as optimized as it could have been under a more extensive competitive process. Furthermore, reliance on a single contractor for a critical service introduces vendor dependency risk. Ensuring robust performance monitoring and contingency planning by the VA is crucial to mitigate these risks.

How effective is the firm fixed price (FFP) contract type in managing costs for courier services?

The Firm Fixed Price (FFP) contract type is generally effective in managing costs for services like courier delivery, as it shifts the risk of cost overruns to the contractor. Under an FFP agreement, the price is set and not subject to adjustment based on the contractor's actual costs. This provides the VA with cost certainty and predictability, making budgeting more straightforward. For services with relatively stable operating costs and well-defined scopes, like routine courier services, FFP is often preferred. It incentivizes the contractor to control their own costs efficiently to maximize profit. The primary limitation is that if market prices for fuel or labor increase significantly, the contractor bears the burden, which could potentially lead to less competitive bidding in the future if not managed carefully.

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

Historical spending patterns for courier services by the Department of Veterans Affairs (VA) would typically show a consistent need for such services to support its widespread network of medical centers, regional offices, and administrative facilities. The VA relies heavily on the timely transfer of documents, medical records, and supplies. Spending in this category can fluctuate based on specific program needs, consolidation efforts, and the adoption of digital solutions, but a baseline requirement for physical delivery services generally persists. Analyzing past VA contracts for courier services, including their values, durations, and awarded contractors, would reveal trends in outsourcing these logistics functions and the overall investment in maintaining efficient delivery operations across the department.

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: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 36C24720Q0428

Offers Received: 12

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2100 BARRETT PARK DR STE 505, KENNESAW, GA, 30144

Business Categories: Category Business, Limited Liability Corporation, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $2,463,847

Exercised Options: $2,067,801

Current Obligation: $2,067,729

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline