DOE awards $1.5M to UPS for Domestic Small Package Delivery under NGDS contract
Contract Overview
Contract Amount: $1,505,107 ($1.5M)
Contractor: United Parcel Service CO.
Awarding Agency: Department of Energy
Start Date: 2023-04-01
End Date: 2026-09-30
Contract Duration: 1,278 days
Daily Burn Rate: $1.2K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 2
Pricing Type: TIME AND MATERIALS
Sector: Other
Official Description: DOMESTIC SMALL PACKAGE DELIVERY SERVICES UNDER THE NEXT GENERATION DELIVERY SERVICE (NGDS), MANDATORY GOVERNMENT-WIDE SOLUTION FOR UNITED PARCEL SERVICE (UPS), HTC711-23-D-C025. PERIOD OF PERFORMANCE 04/01/2023 - 09/30/2026.
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20585
Plain-Language Summary
Department of Energy obligated $1.5 million to UNITED PARCEL SERVICE CO. for work described as: DOMESTIC SMALL PACKAGE DELIVERY SERVICES UNDER THE NEXT GENERATION DELIVERY SERVICE (NGDS), MANDATORY GOVERNMENT-WIDE SOLUTION FOR UNITED PARCEL SERVICE (UPS), HTC711-23-D-C025. PERIOD OF PERFORMANCE 04/01/2023 - 09/30/2026. Key points: 1. Mandatory government-wide solution for UPS services. 2. Contract period runs from April 2023 to September 2026. 3. Awarded by the Department of Energy, serving multiple agencies. 4. Focuses on essential courier and express delivery services.
Value Assessment
Rating: fair
The award amount of $1.5M is a delivery order against a larger contract. Without knowing the total contract ceiling and the specific services rendered, a precise pricing assessment is difficult. However, it represents a portion of the government's commitment to a pre-negotiated mandatory solution.
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 process was initially employed. However, this specific delivery order is for UPS, suggesting a pre-selected vendor for this mandatory government-wide solution.
Taxpayer Impact: Taxpayer funds are utilized for essential delivery services, with the cost benchmarked against a government-wide agreement to ensure reasonable pricing.
Public Impact
Ensures reliable package delivery for government operations nationwide. Supports critical agency functions requiring timely mail and package transport. Provides a standardized delivery solution across federal agencies. Contributes to the efficiency of government logistics.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for higher costs compared to agency-specific negotiated rates.
- Limited flexibility if specific delivery needs deviate from standard UPS services.
Positive Signals
- Leverages established infrastructure of a major carrier.
- Provides a consistent and predictable delivery service.
- Meets a mandatory government-wide requirement.
Sector Analysis
This contract falls under the 'Couriers and Express Delivery Services' sector, specifically supporting government logistics. Spending in this area is crucial for agency operations, and government-wide contracts aim to achieve economies of scale and standardized service levels.
Small Business Impact
The data indicates this award is to United Parcel Service (UPS), a large corporation. There is no direct indication of small business participation in this specific delivery order, suggesting the primary contractor is not an SMB.
Oversight & Accountability
The Next Generation Delivery Service (NGDS) is a government-wide solution, implying a level of centralized oversight. However, specific oversight for this delivery order would likely fall under the Department of Energy's contracting officers.
Related Government Programs
- Couriers and Express Delivery Services
- Department of Energy Contracting
- Department of Energy Programs
Risk Flags
- Mandatory use may limit cost-saving opportunities.
- Reliance on a single provider could pose supply chain risks.
- Potential for scope creep or unmonitored service expansion.
- Lack of detailed performance metrics in provided data.
Tags
couriers-and-express-delivery-services, department-of-energy, dc, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $1.5 million to UNITED PARCEL SERVICE CO.. DOMESTIC SMALL PACKAGE DELIVERY SERVICES UNDER THE NEXT GENERATION DELIVERY SERVICE (NGDS), MANDATORY GOVERNMENT-WIDE SOLUTION FOR UNITED PARCEL SERVICE (UPS), HTC711-23-D-C025. PERIOD OF PERFORMANCE 04/01/2023 - 09/30/2026.
Who is the contractor on this award?
The obligated recipient is UNITED PARCEL SERVICE CO..
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $1.5 million.
What is the period of performance?
Start: 2023-04-01. End: 2026-09-30.
What is the total ceiling value of the parent NGDS contract, and how does this $1.5M delivery order compare to the overall anticipated spend?
The provided data does not include the total ceiling value of the parent Next Generation Delivery Service (NGDS) contract. To assess the significance of this $1.5 million delivery order, information on the contract's total value and projected spend is necessary. Without this context, it's difficult to determine if this award represents a substantial portion or a minor allocation of the overall program's budget.
How does the pricing structure of this UPS delivery order compare to alternative delivery service providers or previous government contracts for similar services?
The pricing for this delivery order is based on the terms established within the broader NGDS contract, which was competitively awarded. A direct comparison to alternative providers or previous contracts would require access to the specific rates negotiated under NGDS and a benchmark of current market pricing for comparable delivery services. The 'full and open competition after exclusion of sources' suggests an attempt at price discovery, but the mandatory nature of the solution may limit direct price comparisons.
What specific performance metrics or service level agreements (SLAs) are in place for this delivery order to ensure effective and timely delivery of government packages?
The data indicates a 'Time and Materials' contract type and a period of performance, but does not detail specific performance metrics or Service Level Agreements (SLAs). Effective oversight would require defined SLAs for delivery times, package handling, tracking, and reporting. The Department of Energy, as the awarding agency, would be responsible for monitoring UPS's adherence to these, though the specifics are not provided here.
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: TIME AND MATERIALS (Y)
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: $1,505,107
Exercised Options: $1,505,107
Current Obligation: $1,505,107
Actual Outlays: $1,436,283
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HTC71123DC025
IDV Type: IDC
Timeline
Start Date: 2023-04-01
Current End Date: 2026-09-30
Potential End Date: 2026-09-30 00:00:00
Last Modified: 2026-04-06
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