VA Awards $36.4M Contract for Mail Manifesting Services to FedEx Supply Chain

Contract Overview

Contract Amount: $36,392,462 ($36.4M)

Contractor: Fedex Supply Chain Distribution System, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-10-01

End Date: 2025-09-30

Contract Duration: 364 days

Daily Burn Rate: $100.0K/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, 37127

State: Tennessee Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $36.4 million to FEDEX SUPPLY CHAIN DISTRIBUTION SYSTEM, INC. for work described as: MAIL MANIFESTING SERVICES Key points: 1. Contract awarded to a single, established provider for mail manifesting. 2. The award utilizes a Blanket Purchase Agreement (BPA) Call. 3. The contract duration is one year, with a firm fixed price. 4. No small business participation is noted in the award.

Value Assessment

Rating: fair

The contract value of $36.4 million for one year of mail manifesting services appears to be within a reasonable range for large-scale operations. Benchmarking against similar contracts for comprehensive logistics and mail handling services would be necessary for a definitive assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The use of a BPA Call suggests that a pre-negotiated agreement was leveraged, potentially streamlining the procurement process and ensuring competitive pricing was established during the initial BPA.

Taxpayer Impact: Taxpayers benefit from competitive pricing achieved through the full and open competition process, ensuring value for money in the provision of essential mail manifesting services.

Public Impact

Ensures efficient processing and tracking of mail for the Department of Veterans Affairs. Supports the operational needs of VA facilities nationwide. Potential for cost savings through streamlined mail management.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific small business participation.
Reliance on a single vendor for a critical service.

Positive Signals

Awarded under full and open competition.
Utilizes a firm fixed price contract type.
Leverages an existing BPA Call for efficiency.

Sector Analysis

This contract falls under Business Support Services, specifically mail manifesting. Spending in this sector is generally driven by the volume of mail and packages handled by government agencies. Benchmarks for similar services vary widely based on scale and specific requirements.

Small Business Impact

The data indicates no specific small business participation in this contract award. While the primary awardee is a large corporation, opportunities for small businesses may exist further down the supply chain or in future procurements.

Oversight & Accountability

The use of a BPA Call suggests that the initial competition for the overarching BPA was robust. However, ongoing oversight of the contractor's performance and adherence to contract terms is crucial for ensuring continued value and service quality.

Related Government Programs

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

Risk Flags

Lack of explicit performance metrics or SLAs.
No small business participation noted.
Potential for vendor lock-in if the BPA is not recompeted broadly.
Dependence on a single provider for a critical function.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $36.4 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 $36.4 million.

What is the period of performance?

Start: 2024-10-01. End: 2025-09-30.

What was the competitive landscape during the initial BPA solicitation that led to this call?

The initial solicitation for the Blanket Purchase Agreement (BPA) likely involved a broader range of vendors competing for the opportunity to provide mail manifesting services. The specific details of that competition, including the number of bidders and the pricing structure established, would provide further insight into the overall value achieved. Understanding the terms of the original BPA is key to assessing the effectiveness of this specific call.

Are there any performance metrics or service level agreements (SLAs) associated with this contract to mitigate performance risks?

The provided data does not specify performance metrics or Service Level Agreements (SLAs). While the contract is firm fixed price, ensuring consistent and reliable mail manifesting services is critical for VA operations. The absence of explicit SLAs raises a potential risk if contractor performance falters, necessitating close monitoring by the VA to ensure operational continuity and taxpayer value.

How does the cost of this contract compare to historical spending on similar mail manifesting services by the VA or other agencies?

Without historical spending data or benchmarks for comparable mail manifesting services, it is difficult to definitively assess the cost-effectiveness of this $36.4 million award. A thorough analysis would require comparing this contract's per-unit costs or total value against similar procurements, considering factors like volume, scope of services, and contract duration to determine if it represents good value for taxpayer funds.

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: 100 PAPERCRAFT PARK, PITTSBURGH, PA, 15238

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

Financial Breakdown

Contract Ceiling: $36,392,462

Exercised Options: $36,392,462

Current Obligation: $36,392,462

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 36C77020A0009

IDV Type: BPA

Timeline