DoD's $39.3M contract for consolidated transportation shipments awarded to Federal Express
Contract Overview
Contract Amount: $39,315,739 ($39.3M)
Contractor: Federal Express Corporation
Awarding Agency: Department of Defense
Start Date: 2025-01-01
End Date: 2025-01-31
Contract Duration: 30 days
Daily Burn Rate: $1.3M/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: CONSOLIDATED TRANSPORTATION SHIPMENTS MADE BY DECENTRALIZED ORDERING OFFICERS.
Place of Performance
Location: MEMPHIS, SHELBY County, TENNESSEE, 38132
Plain-Language Summary
Department of Defense obligated $39.3 million to FEDERAL EXPRESS CORPORATION for work described as: CONSOLIDATED TRANSPORTATION SHIPMENTS MADE BY DECENTRALIZED ORDERING OFFICERS. Key points: 1. Significant spending on essential logistics services by the Department of Defense. 2. Federal Express is a major player in the express delivery market. 3. Potential risk of over-reliance on a single provider for critical transport. 4. Spending falls within the Couriers and Express Delivery Services sector.
Value Assessment
Rating: good
The contract value of $39.3M for a 30-day period appears reasonable given the scope of consolidated transportation services. Benchmarking against similar large-scale logistics contracts would provide further validation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating a competitive process but with specific source exclusions. This method aims for best value while potentially limiting the pool of bidders.
Taxpayer Impact: Taxpayer funds are being used for essential transportation services, with the aim of achieving competitive pricing through the chosen procurement method.
Public Impact
Ensures timely delivery of goods and materials for military operations. Supports the Department of Defense's global supply chain management. Impacts the efficiency and cost-effectiveness of military logistics.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition due to source exclusion.
- Potential for price increases in future contract renewals.
- Dependence on a single vendor for critical services.
Positive Signals
- Leverages established logistics infrastructure of a major provider.
- Clear contract terms for a defined service period.
- Potential for streamlined operations through consolidation.
Sector Analysis
The Couriers and Express Delivery Services sector is vital for government operations, enabling rapid movement of goods. Spending benchmarks for this sector vary widely based on volume and service level, but this contract represents a substantial investment.
Small Business Impact
This contract does not appear to directly benefit small businesses, as it is awarded to a large corporation, Federal Express. There is no indication of subcontracting opportunities for small businesses within the provided data.
Oversight & Accountability
Oversight is managed by USTRANSCOM, ensuring that the delivery orders align with the consolidated transportation requirements. Accountability for service delivery rests with Federal Express.
Related Government Programs
- Couriers and Express Delivery Services
- Department of Defense Contracting
- USTRANSCOM Programs
Risk Flags
- Limited competition.
- Potential vendor lock-in.
- Dependence on a single large provider.
- Lack of small business participation.
Tags
couriers-and-express-delivery-services, department-of-defense, tn, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $39.3 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 $39.3 million.
What is the period of performance?
Start: 2025-01-01. End: 2025-01-31.
What is the historical performance of Federal Express with the Department of Defense for similar services?
Historical performance data for Federal Express with the DoD is crucial for assessing reliability and value. Past contract performance, including on-time delivery rates, issue resolution, and overall satisfaction, provides insight into their capability to meet the demands of this consolidated transportation contract. This information helps validate the 'good' rating and informs future procurement decisions.
What specific sources were excluded, and what was the justification for their exclusion?
Understanding the excluded sources and the rationale behind their exclusion is key to evaluating the 'limited' competition. If exclusions were based on specific capabilities or past performance issues, it strengthens the justification for the chosen procurement method. However, if exclusions were arbitrary, it could raise concerns about fairness and potentially missed opportunities for better pricing or service.
How does the per-unit cost of this contract compare to industry benchmarks for similar consolidated shipping services?
A detailed per-unit cost analysis against industry benchmarks is essential for confirming the 'good' value assessment. Comparing costs for similar shipment volumes, distances, and service levels offered by other major carriers would reveal if the DoD is receiving a competitive rate. Significant deviations from benchmarks 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
Parent Company: Fedex Corp
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: $39,315,739
Exercised Options: $39,315,739
Current Obligation: $39,315,739
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HTC71123DC023
IDV Type: IDC
Timeline
Start Date: 2025-01-01
Current End Date: 2025-01-31
Potential End Date: 2025-01-31 00:00:00
Last Modified: 2025-03-14
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