VA awards $32.17M contract to UPS for delivery services, utilizing full and open competition

Contract Overview

Contract Amount: $32,170,507 ($32.2M)

Contractor: United Parcel Service CO.

Awarding Agency: Department of Veterans Affairs

Start Date: 2021-10-01

End Date: 2022-09-30

Contract Duration: 364 days

Daily Burn Rate: $88.4K/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: SHIPPING

Place of Performance

Location: SHAWNEE, JOHNSON County, KANSAS, 66227

State: Kansas Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $32.2 million to UNITED PARCEL SERVICE CO. for work described as: SHIPPING Key points: 1. Significant contract value for essential delivery services. 2. Competition method indicates a robust market for courier services. 3. Risk appears moderate given the established provider and fixed-price contract. 4. Spending aligns with the broader IT and logistics sectors.

Value Assessment

Rating: good

The contract value of $32.17M for a one-year period suggests a competitive pricing structure. Benchmarking against similar large-scale delivery contracts would provide further insight into its cost-effectiveness.

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 a competitive bidding process. This method generally leads to better price discovery and value for the government.

Taxpayer Impact: The competitive nature of this award is expected to yield favorable pricing, maximizing taxpayer value for essential shipping services.

Public Impact

Ensures timely delivery of critical supplies and mail for veterans. Supports the operational efficiency of the Department of Veterans Affairs. Leverages a major private sector logistics provider for government needs.

Waste & Efficiency Indicators

Waste Risk Score: 88 / 10

Positive Signals

Competitive award process
Established service provider
Fixed-price contract

Sector Analysis

This spending falls within the broad category of logistics and courier services, essential for government operations. Benchmarks for similar contracts would typically consider volume, distance, and service level agreements.

Small Business Impact

The data does not indicate any specific provisions or awards made to small businesses under this contract. Further analysis would be needed to determine small business participation.

Oversight & Accountability

The contract was awarded through a competitive process, suggesting adherence to procurement regulations. Ongoing oversight would focus on service delivery and adherence to contract terms.

Related Government Programs

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

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $32.2 million to UNITED PARCEL SERVICE CO.. SHIPPING

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 $32.2 million.

What is the period of performance?

Start: 2021-10-01. End: 2022-09-30.

What is the historical spending trend for similar delivery services by the VA?

Analyzing historical spending on delivery services by the VA would reveal if this $32.17M award represents an increase, decrease, or stable expenditure. It helps contextualize the current investment and identify potential cost-saving opportunities or escalating needs over time.

Are there specific performance metrics tied to this contract, and how is UPS performing against them?

Performance metrics are crucial for ensuring service quality and value. Understanding these metrics (e.g., on-time delivery rates, package condition) and tracking UPS's performance against them is key to assessing the contract's effectiveness and identifying any potential issues early on.

What is the potential impact of using a single large provider like UPS on future competition and pricing?

While full and open competition was used for this award, relying on a single large provider for a significant duration could potentially influence future market dynamics. It's important to monitor if this concentration impacts the availability of other bidders or leads to less competitive pricing in subsequent solicitations.

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: $32,170,507

Exercised Options: $32,170,507

Current Obligation: $32,170,507

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HTC71117DC003

IDV Type: IDC

Timeline