DoD's $29.6M Federal Express Contract for Courier Services Awarded Under Full and Open Competition
Contract Overview
Contract Amount: $29,610,785 ($29.6M)
Contractor: Federal Express Corporation
Awarding Agency: Department of Defense
Start Date: 2025-07-01
End Date: 2025-07-31
Contract Duration: 30 days
Daily Burn Rate: $987.0K/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 $29.6 million to FEDERAL EXPRESS CORPORATION for work described as: CONSOLIDATED TRANSPORTATION SHIPMENTS MADE BY DECENTRALIZED ORDERING OFFICERS. Key points: 1. Significant contract value of $29.6 million for transportation shipments. 2. Competition method is 'Full and Open Competition After Exclusion of Sources', indicating a structured bidding process. 3. Risk appears moderate given the established provider and fixed-price contract. 4. Sector is IT/Couriers and Express Delivery Services, a critical logistical function for the DoD.
Value Assessment
Rating: good
The contract value of $29.6 million for a 30-day delivery order appears reasonable for consolidated transportation shipments. Benchmarking against similar large-scale logistics contracts would provide further context on pricing efficiency.
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', suggesting a competitive bidding process that aimed to maximize value. This method generally leads to better price discovery and cost savings for the government.
Taxpayer Impact: The competitive award process is expected to yield fair pricing, ensuring taxpayer funds are used efficiently for essential transportation services.
Public Impact
Ensures timely delivery of critical goods and materials for Department of Defense operations. Supports logistical needs across various military branches and agencies. Maintains supply chain integrity and operational readiness through reliable courier services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for price increases in future contract renewals.
- Dependence on a single vendor for a critical service.
Positive Signals
- Competitive award process ensures fair pricing.
- Fixed-price contract provides cost certainty.
- Established provider with a track record.
Sector Analysis
This contract falls within the Couriers and Express Delivery Services sector, a vital component of the Department of Defense's logistical infrastructure. Spending in this sector is consistently high due to the global reach and operational demands of the military.
Small Business Impact
The data indicates this contract was awarded to Federal Express Corporation, a large business. There is no indication of small business participation in this specific award, which is common for large-scale transportation contracts.
Oversight & Accountability
The contract is managed by USTRANSCOM, a key component of the DoD responsible for managing and coordinating the movement of personnel and material. Oversight is likely robust given the strategic importance of these services.
Related Government Programs
- Couriers and Express Delivery Services
- Department of Defense Contracting
- USTRANSCOM Programs
Risk Flags
- Potential for service disruption by the sole provider.
- Lack of small business participation.
- Dependence on a single vendor for critical logistics.
- Price escalation in future contract periods.
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 $29.6 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 $29.6 million.
What is the period of performance?
Start: 2025-07-01. End: 2025-07-31.
What is the historical performance of Federal Express Corporation with the Department of Defense for similar services?
Historical performance data for Federal Express Corporation with the DoD is crucial for assessing reliability and service quality. Past contract awards, performance reviews, and any documented issues or commendations would provide insight into their capabilities and adherence to delivery schedules and service level agreements, informing future risk assessments and vendor selection.
How does the per-unit cost of these consolidated shipments compare to industry benchmarks or previous DoD contracts?
Comparing the per-unit cost against industry benchmarks and prior DoD contracts is essential for evaluating cost-effectiveness. Without specific unit metrics, a direct comparison is difficult, but the overall contract value and duration can be assessed against similar logistics procurements to identify potential overspending or cost savings.
What are the contingency plans if Federal Express Corporation experiences service disruptions or fails to meet delivery requirements?
Contingency planning for service disruptions is vital for ensuring mission continuity. The contract should outline remedies for non-performance, such as penalties or the right to procure services elsewhere. The DoD's ability to quickly onboard alternative carriers or leverage other transportation assets mitigates the risk associated with reliance on a single provider.
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: $29,610,785
Exercised Options: $29,610,785
Current Obligation: $29,610,785
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HTC71123DC023
IDV Type: IDC
Timeline
Start Date: 2025-07-01
Current End Date: 2025-07-31
Potential End Date: 2025-07-31 00:00:00
Last Modified: 2025-09-08
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