VA Awards $190K for Small Package Delivery to UPS, Ending Sept 2026

Contract Overview

Contract Amount: $190,000 ($190.0K)

Contractor: United Parcel Service CO.

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-04-01

End Date: 2026-09-30

Contract Duration: 182 days

Daily Burn Rate: $1.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: JOHN D. DINGELL VA MEDICAL CENTER - SMALL PACKAGE DELIVERY

Place of Performance

Location: DETROIT, WAYNE County, MICHIGAN, 48201

State: Michigan Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $190,000 to UNITED PARCEL SERVICE CO. for work described as: JOHN D. DINGELL VA MEDICAL CENTER - SMALL PACKAGE DELIVERY Key points: 1. Contract awarded to a single, well-known provider. 2. Limited duration suggests a specific need or pilot program. 3. Fixed-price contract offers cost certainty. 4. Focus on courier services aligns with healthcare facility needs.

Value Assessment

Rating: good

The $190,000 award for a 6-month period appears reasonable for specialized courier services. Benchmarking against similar contracts for express delivery would provide a clearer picture of value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating a specific reason for limiting the pool. This method may impact price discovery if viable alternatives were not fully considered.

Taxpayer Impact: Taxpayer funds are being used for essential delivery services, with the price set to ensure service delivery within the specified period.

Public Impact

Ensures timely delivery of medical supplies and patient-related materials. Supports the operational efficiency of the John D. Dingell VA Medical Center. Provides a reliable logistics solution for critical healthcare operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition raises questions about potential cost savings.
Short contract duration might lead to frequent re-competition costs.

Positive Signals

Clear fixed-price contract.
Established provider ensures service reliability.

Sector Analysis

The healthcare sector relies heavily on efficient logistics for medical supplies and patient care. Spending on courier and delivery services is crucial for operational continuity, with benchmarks varying based on volume and urgency.

Small Business Impact

This contract does not appear to involve small businesses, as it was awarded to a large, established provider. Opportunities for small businesses in this sector often lie in specialized logistics or regional delivery.

Oversight & Accountability

The Department of Veterans Affairs is responsible for overseeing this contract. Accountability is maintained through performance metrics and adherence to the contract terms.

Related Government Programs

Couriers and Express Delivery Services
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Limited competition
Potential for higher costs due to limited vendor pool
Short contract duration may lead to inefficiencies
Lack of small business participation

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $190,000 to UNITED PARCEL SERVICE CO.. JOHN D. DINGELL VA MEDICAL CENTER - SMALL PACKAGE DELIVERY

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 $190,000.

What is the period of performance?

Start: 2026-04-01. End: 2026-09-30.

What was the specific justification for excluding other sources in the full and open competition?

The justification for excluding other sources in the full and open competition is not detailed in the provided data. Typically, such exclusions are based on factors like unique capabilities, urgent needs, or specific performance requirements that only a limited number of vendors can meet. Further investigation into the solicitation documents would be necessary to understand the precise rationale.

How does the per-package cost compare to industry averages for similar VA medical center deliveries?

Without knowing the total number of packages anticipated during the contract period, calculating a precise per-package cost is not feasible. However, the total award of $190,000 over approximately six months suggests a significant volume of deliveries. A comparison would require detailed volume data and benchmarking against industry rates for express courier services to healthcare facilities.

What are the key performance indicators (KPIs) for this delivery contract?

Key performance indicators for this delivery contract would likely include on-time delivery rates, package integrity (no damage or loss), tracking accuracy, and response times for pickup requests. The Department of Veterans Affairs would establish specific metrics to ensure the reliability and efficiency of United Parcel Service's courier services, ensuring critical medical supplies and documents reach their destinations promptly and securely.

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

Offers Received: 2

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: $190,000

Exercised Options: $190,000

Current Obligation: $190,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HTC71123DC025

IDV Type: IDC

Timeline