HHS awards $6.3M for transportation services to FedEx Custom Critical, highlighting delivery order competition
Contract Overview
Contract Amount: $6,300,000 ($6.3M)
Contractor: Fedex Custom Critical Inc
Awarding Agency: Department of Health and Human Services
Start Date: 2022-03-08
End Date: 2026-09-13
Contract Duration: 1,650 days
Daily Burn Rate: $3.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: FIRM FIXED PRICE
Sector: Transportation
Official Description: TRANSPORTATION AND LOGISTICS SERVICES
Place of Performance
Location: ATLANTA, FULTON County, GEORGIA, 30331
State: Georgia Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $6.3 million to FEDEX CUSTOM CRITICAL INC for work described as: TRANSPORTATION AND LOGISTICS SERVICES Key points: 1. Significant contract value of $6.3 million for specialized transportation. 2. FedEx Custom Critical is a major player in logistics, indicating potential for competitive pricing. 3. Risk of service disruption if provider fails, though contract duration is managed. 4. Transportation and Logistics sector is crucial for government operations, especially for health emergencies.
Value Assessment
Rating: good
The contract value of $6.3 million appears reasonable for specialized, time-sensitive transportation services. Benchmarking against similar HHS or other agency contracts for critical logistics would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a robust price discovery process. The use of a delivery order mechanism allows for flexibility while maintaining competitive pressure.
Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for essential transportation services.
Public Impact
Ensures timely delivery of critical supplies and equipment for health preparedness. Supports the operational readiness of the Office of Assistant Secretary for Preparedness and Response. Provides specialized logistics capabilities that may not be readily available in-house.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Reliance on a single provider for critical services.
- Potential for price increases in future contract renewals.
- Geographic limitations of service availability.
Positive Signals
- Awarded through full and open competition.
- Contract duration allows for sustained support.
- Firm fixed price contract provides cost certainty.
Sector Analysis
This contract falls within the Transportation and Logistics sector, which is vital for government agencies like HHS to maintain operational capabilities, especially during emergencies. Spending benchmarks for similar services vary widely based on scope and urgency.
Small Business Impact
The data indicates this contract was not awarded to small businesses, as the prime contractor is FedEx Custom Critical. Further analysis would be needed to determine if any subcontracting opportunities exist for small businesses.
Oversight & Accountability
The use of delivery orders under a larger contract framework allows for oversight of specific service provisions. The contracting agency, HHS, is responsible for monitoring performance and ensuring compliance with contract terms.
Related Government Programs
- Used Household and Office Goods Moving
- Department of Health and Human Services Contracting
- Office of Assistant Secretary for Preparedness and Response Programs
Risk Flags
- Potential for service disruption.
- Lack of small business participation.
- Reliance on a single large corporation.
- Limited transparency on specific service details.
Tags
used-household-and-office-goods-moving, department-of-health-and-human-services, ga, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $6.3 million to FEDEX CUSTOM CRITICAL INC. TRANSPORTATION AND LOGISTICS SERVICES
Who is the contractor on this award?
The obligated recipient is FEDEX CUSTOM CRITICAL INC.
Which agency awarded this contract?
Awarding agency: Department of Health and Human Services (Office of Assistant Secretary for Preparedness and Response).
What is the total obligated amount?
The obligated amount is $6.3 million.
What is the period of performance?
Start: 2022-03-08. End: 2026-09-13.
What is the specific nature of the 'household and office goods moving' service being provided under this contract, and how does it relate to HHS's preparedness mission?
The data specifies 'Used Household and Office Goods Moving' under NAICS code 484210. While seemingly unrelated to immediate health crises, this service likely supports personnel relocation, equipment transfers, or the movement of essential administrative supplies for the Office of Assistant Secretary for Preparedness and Response (ASPR), ensuring operational continuity and readiness.
Given the $6.3M value and firm fixed price, what are the potential risks associated with service disruptions or performance issues from FedEx Custom Critical?
The primary risk is service disruption due to provider failure, which could impede HHS's preparedness operations. While a firm fixed price offers cost certainty, performance issues could still arise. Mitigation strategies should include clear performance standards, remedies for non-performance, and contingency plans for alternative logistics providers.
How does the 'full and open competition' for this delivery order ensure effective price discovery and value for taxpayer money, especially for specialized logistics?
Full and open competition allows multiple qualified vendors to bid, driving down prices through market forces. For specialized logistics, this process ensures that HHS receives competitive bids from providers capable of meeting stringent requirements, thereby maximizing the value for taxpayer money by selecting the best combination of price and performance.
Industry Classification
NAICS: Transportation and Warehousing › Specialized Freight Trucking › Used Household and Office Goods Moving
Product/Service Code: TRANSPORT, TRAVEL, RELOCATION › TRANSPORTATION OF THINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: 75A50322R00001
Offers Received: 5
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Fedex Corp
Address: 4205 HIGHLANDER PKWY, RICHFIELD, OH, 44286
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $6,300,000
Exercised Options: $6,300,000
Current Obligation: $6,300,000
Actual Outlays: $2,746,382
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: GS33F0005U
IDV Type: FSS
Timeline
Start Date: 2022-03-08
Current End Date: 2026-09-13
Potential End Date: 2026-09-13 00:00:00
Last Modified: 2026-03-31
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