DoD's $18.6M Federal Express Contract for Courier Services Awarded Under Full and Open Competition

Contract Overview

Contract Amount: $18,577,879 ($18.6M)

Contractor: Federal Express Corporation

Awarding Agency: Department of Defense

Start Date: 2025-08-01

End Date: 2025-08-31

Contract Duration: 30 days

Daily Burn Rate: $619.3K/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

State: Tennessee Government Spending

Plain-Language Summary

Department of Defense obligated $18.6 million to FEDERAL EXPRESS CORPORATION for work described as: CONSOLIDATED TRANSPORTATION SHIPMENTS MADE BY DECENTRALIZED ORDERING OFFICERS. Key points: 1. Significant contract value of $18.6 million for transportation shipments. 2. Competition method is 'Full and Open Competition After Exclusion of Sources', indicating a structured procurement 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.

Value Assessment

Rating: good

The contract value of $18.6 million for a 30-day period suggests a substantial volume of shipments. Benchmarking against similar large-scale transportation contracts would be necessary for a precise value assessment, but the fixed-price structure provides cost certainty.

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'. This method allows for broad participation while potentially specifying certain requirements. The price discovery is likely robust due to the competitive nature of the award.

Taxpayer Impact: Taxpayers benefit from a competitive bidding process that aims to secure the best value for essential transportation services.

Public Impact

Ensures timely delivery of critical goods and materials for the Department of Defense. Supports military readiness and operational efficiency through reliable logistics. Provides employment opportunities within the courier and express delivery sector.

Waste & Efficiency Indicators

Waste Risk Score: 60 / 10

Warning Flags

Potential for price increases in future contract renewals.
Dependence on a single vendor for critical delivery services.

Positive Signals

Fixed-price contract offers cost predictability.
Awarded through full and open competition.
Experienced provider in Federal Express Corporation.

Sector Analysis

This contract falls within the Couriers and Express Delivery Services sector, a vital component of the federal supply chain. Spending in this area is consistent with the DoD's need for rapid and reliable movement of goods and information.

Small Business Impact

The data indicates that small businesses were not directly awarded this contract, as it went to Federal Express Corporation. Further analysis would be needed to determine if small businesses are involved as subcontractors.

Oversight & Accountability

The contract is managed by USTRANSCOM, a key component of the Department of Defense responsible for global mobility. Oversight would involve monitoring delivery performance and adherence to contract terms.

Related Government Programs

Couriers and Express Delivery Services
Department of Defense Contracting
USTRANSCOM Programs

Risk Flags

Potential for price escalation in future contract periods.
Reliance on a single, large commercial provider.
Need to verify small business subcontracting opportunities.
Ensuring robust performance monitoring by USTRANSCOM.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.6 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 $18.6 million.

What is the period of performance?

Start: 2025-08-01. End: 2025-08-31.

What is the historical performance of Federal Express Corporation with the Department of Defense for similar services?

Federal Express Corporation has a long-standing relationship with the Department of Defense, often handling significant volumes of express and freight shipments. Historical performance data, including on-time delivery rates, damage claims, and customer satisfaction surveys, would provide a comprehensive view of their reliability and suitability for this contract. This information is crucial for assessing the risk associated with this award and ensuring continued operational effectiveness.

How does the awarded price compare to industry benchmarks for similar delivery volumes and service levels?

Benchmarking the awarded price against industry standards for comparable delivery volumes and service levels is essential for validating value for money. Factors such as transit times, geographic coverage, and special handling requirements influence pricing. A detailed cost analysis comparing this contract's unit prices to market rates would reveal potential overpricing or cost savings, directly impacting taxpayer investment.

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

Understanding the specific performance metrics and Service Level Agreements (SLAs) is critical for evaluating the effectiveness of this contract. These define the expected standards for delivery speed, reliability, tracking, and handling of shipments. Robust SLAs, coupled with a clear mechanism for performance monitoring and penalties for non-compliance, ensure that the Department of Defense receives the required services efficiently and that taxpayer funds are used appropriately.

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: $18,577,879

Exercised Options: $18,577,879

Current Obligation: $18,577,879

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HTC71123DC023

IDV Type: IDC

Timeline