VA awards $34.5M for Mail Manifesting Services to FedEx Supply Chain Distribution System

Contract Overview

Contract Amount: $34,480,240 ($34.5M)

Contractor: Fedex Supply Chain Distribution System, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2021-10-01

End Date: 2022-06-30

Contract Duration: 272 days

Daily Burn Rate: $126.8K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: MAIL MANIFESTING SERVICES

Place of Performance

Location: MURFREESBORO, RUTHERFORD County, TENNESSEE, 37130

State: Tennessee Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $34.5 million to FEDEX SUPPLY CHAIN DISTRIBUTION SYSTEM, INC. for work described as: MAIL MANIFESTING SERVICES Key points: 1. Significant contract value for essential business support services. 2. FedEx Supply Chain Distribution System secured the award. 3. Potential for cost savings and efficiency gains in mail logistics. 4. Focus on business support services indicates a non-technical sector.

Value Assessment

Rating: good

The contract value of $34.5M for 272 days suggests a substantial operational cost. Benchmarking against similar mail manifesting or logistics contracts would be necessary for a precise value assessment, but the firm-fixed-price structure provides cost certainty.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating a robust price discovery process. The use of a BPA Call suggests a streamlined procurement method within an existing framework, likely contributing to efficient award.

Taxpayer Impact: Taxpayer funds are being used for essential mail manifesting services, with competition aiming to ensure fair pricing. The efficiency gains from a well-executed contract could lead to better value for taxpayer dollars.

Public Impact

Ensures efficient processing and tracking of mail for VA operations. Supports the logistical needs of a major federal agency. Potential impact on mail delivery times and accuracy for VA correspondence.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Contract duration is relatively short (272 days).
No specific small business participation noted.

Positive Signals

Awarded under full and open competition.
Firm fixed price contract provides cost certainty.
Utilizes an existing BPA Call for efficiency.

Sector Analysis

This contract falls under Business Support Services, specifically mail manifesting. Spending in this sector is generally stable and driven by the operational needs of government agencies for document and package management.

Small Business Impact

The data indicates that small business participation was not a specific requirement or was not met for this contract. Further analysis would be needed to determine if opportunities were missed or if the scope was not conducive to small business involvement.

Oversight & Accountability

The contract was awarded by the Department of Veterans Affairs, suggesting internal oversight mechanisms are in place. The use of a BPA Call implies adherence to pre-established contract terms and conditions, which are subject to oversight.

Related Government Programs

All Other Business Support Services
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Lack of small business participation.
Short contract duration may indicate a temporary solution or frequent re-competition.
No specific performance metrics or outcome data provided.
Potential for vendor lock-in if not managed carefully.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $34.5 million to FEDEX SUPPLY CHAIN DISTRIBUTION SYSTEM, INC.. MAIL MANIFESTING SERVICES

Who is the contractor on this award?

The obligated recipient is FEDEX SUPPLY CHAIN DISTRIBUTION SYSTEM, INC..

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 $34.5 million.

What is the period of performance?

Start: 2021-10-01. End: 2022-06-30.

What is the benchmark cost per piece or per pound for mail manifesting services in the federal government?

Benchmarking mail manifesting services is complex due to varying service levels, package types, and volumes. However, typical federal contracts might range from a few cents to over a dollar per piece, depending on the complexity of tracking, sorting, and reporting required. Without specific details on the VA's mail volume and service requirements, a precise benchmark is difficult to establish, but the $34.5M for 272 days suggests a significant volume.

What are the key performance indicators (KPIs) for this contract, and how are they monitored?

Key performance indicators for mail manifesting services typically include on-time processing rates, accuracy of manifest data, reduction in lost mail, and cost per piece processed. The VA likely monitors these through regular reporting from FedEx and potentially through site visits or audits. Contract clauses would specify performance standards and remedies for non-compliance, ensuring accountability for service delivery.

How does this contract contribute to the VA's overall mission effectiveness?

Efficient mail manifesting is crucial for the VA's administrative and healthcare operations, ensuring timely delivery of critical documents, medical supplies, and communications to veterans and staff. By outsourcing this function to a specialized provider like FedEx, the VA can focus its resources on core healthcare and benefits delivery, potentially improving overall service responsiveness and reducing administrative overhead.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Business Support Services › All Other Business Support Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › ADMINISTRATIVE SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Fedex Corp

Address: 700 CRANBERRY WOODS DR, CRANBERRY TOWNSHIP, PA, 16066

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

Financial Breakdown

Contract Ceiling: $34,480,240

Exercised Options: $34,480,240

Current Obligation: $34,480,240

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 36C77020A0009

IDV Type: BPA

Timeline