DoD's $30M FedEx Contract for Express Delivery Services: USTRANSCOM Leverages Full and Open Competition

Contract Overview

Contract Amount: $30,011,696 ($30.0M)

Contractor: Federal Express Corporation

Awarding Agency: Department of Defense

Start Date: 2023-09-01

End Date: 2023-09-30

Contract Duration: 29 days

Daily Burn Rate: $1.0M/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Transportation

Official Description: CONSOLIDATED TRANSPORTATION SHIPMENTS MADE BY DECENTRALIZED ORDERING OFFICERS.

Place of Performance

Location: MEMPHIS, SHELBY County, TENNESSEE, 38132

State: Tennessee Government Spending

Plain-Language Summary

Department of Defense obligated $30.0 million to FEDERAL EXPRESS CORPORATION for work described as: CONSOLIDATED TRANSPORTATION SHIPMENTS MADE BY DECENTRALIZED ORDERING OFFICERS. Key points: 1. The Department of Defense awarded a $30 million contract to Federal Express Corporation for consolidated transportation shipments. 2. This contract falls under the Couriers and Express Delivery Services sector, a critical component of logistics. 3. The use of full and open competition after exclusion of sources suggests a robust price discovery process. 4. The contract's value and duration indicate significant ongoing transportation needs for the DoD.

Value Assessment

Rating: good

The contract value of $30 million for a one-month period suggests a high volume of shipments. Benchmarking against similar large-scale express delivery contracts would be necessary for a precise 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 using full and open competition after exclusion of sources, indicating that multiple vendors were likely considered. This method generally promotes competitive pricing and ensures the government receives fair value.

Taxpayer Impact: The competitive nature of the award is expected to yield favorable pricing for taxpayers, ensuring efficient use of public funds for essential transportation services.

Public Impact

Ensures timely delivery of critical supplies and equipment for military operations. Supports the logistical backbone of the Department of Defense's global reach. Provides essential services for personnel and administrative needs across various military branches.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price increases in future contract renewals.
Dependence on a single carrier could pose risks if service disruptions occur.

Positive Signals

Utilizes a competitive bidding process.
Firm fixed price contract provides cost predictability.
Supports critical national defense logistics.

Sector Analysis

The Couriers and Express Delivery Services sector is vital for government operations, enabling rapid movement of goods and documents. Spending in this area is often substantial due to the need for reliable and fast delivery across diverse geographic locations.

Small Business Impact

The data indicates this contract was awarded to Federal Express Corporation, a large business. There is no explicit mention of small business participation or subcontracting goals within this specific award notice.

Oversight & Accountability

USTRANSCOM, as the awarding agency, is responsible for managing and overseeing transportation services for the DoD. The use of full and open competition suggests adherence to procurement regulations aimed at ensuring accountability and value.

Related Government Programs

Couriers and Express Delivery Services
Department of Defense Contracting
USTRANSCOM Programs

Risk Flags

Potential for service disruption if FedEx experiences operational issues.
Lack of explicit small business subcontracting noted.
Contract duration is short, requiring frequent re-competition.
Dependence on a single carrier for critical logistics.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $30.0 million to FEDERAL EXPRESS CORPORATION. CONSOLIDATED TRANSPORTATION SHIPMENTS MADE BY DECENTRALIZED ORDERING OFFICERS.

Who is the contractor on this award?

The obligated recipient is FEDERAL EXPRESS CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Defense (USTRANSCOM).

What is the total obligated amount?

The obligated amount is $30.0 million.

What is the period of performance?

Start: 2023-09-01. End: 2023-09-30.

What is the historical cost performance of Federal Express Corporation under similar DoD contracts?

Analyzing historical performance data for Federal Express Corporation with the Department of Defense is crucial for assessing long-term value. Past contract awards, delivery success rates, and any documented cost overruns or savings would provide a clearer picture of their reliability and cost-effectiveness beyond this single award. This context helps determine if the current pricing is competitive over time.

What are the specific performance metrics and service level agreements (SLAs) tied to this contract?

Understanding the specific performance metrics and SLAs is essential for evaluating the effectiveness of this contract. Key indicators such as on-time delivery rates, package handling standards, and response times to issues are critical. Robust SLAs ensure that the government receives the quality of service expected for the price paid and allows for objective performance monitoring.

How does the pricing of this contract compare to industry benchmarks for similar services provided to other large government agencies?

Comparing the pricing of this $30 million contract to industry benchmarks for similar services provided to other large government entities is vital for assessing value for money. Benchmarking against contracts awarded by agencies like GSA or other cabinet-level departments can reveal if the DoD is receiving competitive rates. Significant deviations could indicate either exceptional service or potential overpayment.

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: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2003 CORPORATE PLZ, MEMPHIS, TN, 38132

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

Financial Breakdown

Contract Ceiling: $30,011,696

Exercised Options: $30,011,696

Current Obligation: $30,011,696

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HTC71123DC023

IDV Type: IDC

Timeline