DoD's $44.8M Federal Express Contract for Consolidated Transportation Shipments Under Full and Open Competition
Contract Overview
Contract Amount: $44,848,694 ($44.8M)
Contractor: Federal Express Corporation
Awarding Agency: Department of Defense
Start Date: 2025-09-01
End Date: 2025-09-30
Contract Duration: 29 days
Daily Burn Rate: $1.5M/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
Plain-Language Summary
Department of Defense obligated $44.8 million to FEDERAL EXPRESS CORPORATION for work described as: CONSOLIDATED TRANSPORTATION SHIPMENTS MADE BY DECENTRALIZED ORDERING OFFICERS. Key points: 1. Significant contract value of $44.8 million for transportation services. 2. Federal Express Corporation is the sole awardee, indicating a strong incumbent relationship or specialized service. 3. The contract falls under the 'Couriers and Express Delivery Services' sector, a critical area for government logistics. 4. Risk is moderate, given the reliance on a single provider for essential delivery services.
Value Assessment
Rating: good
The contract value of $44.8 million for a 29-day period suggests a high per-day expenditure. Benchmarking against similar large-scale express delivery contracts would be necessary to fully assess pricing.
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,' which implies a competitive process but with specific source exclusions. This method aims for best value while potentially limiting the pool of bidders.
Taxpayer Impact: The competitive nature of the award, despite exclusions, should lead to reasonable pricing for taxpayers, ensuring value for the essential transportation services.
Public Impact
Ensures timely delivery of critical goods and documents for the Department of Defense. Supports military operations and personnel by maintaining supply chain integrity. Impacts federal agencies relying on expedited shipping for various missions. Contributes to the efficiency of government logistics and operational readiness.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Reliance on a single vendor for critical delivery services.
- Potential for price increases in future contract renewals.
- Limited visibility into the specific reasons for source exclusion.
Positive Signals
- Awarded under full and open competition, suggesting a structured procurement process.
- Clear contract period and defined service requirements.
- Established provider with a track record in express delivery.
Sector Analysis
This contract operates within the Couriers and Express Delivery Services sector, which is vital for government operations. Spending benchmarks in this sector are typically driven by volume, speed, and geographic reach.
Small Business Impact
The data indicates this contract was not awarded to small businesses, as Federal Express Corporation is a large corporation. There is no indication of subcontracting opportunities for small businesses within this specific award.
Oversight & Accountability
Oversight will be crucial to ensure Federal Express meets all delivery timelines and service level agreements. The Department of Defense's contracting officers are responsible for monitoring performance and addressing any issues.
Related Government Programs
- Couriers and Express Delivery Services
- Department of Defense Contracting
- USTRANSCOM Programs
Risk Flags
- Vendor Lock-in Risk
- Potential for Service Disruptions
- Lack of Small Business Participation
- Price Escalation in Future Contracts
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 $44.8 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 $44.8 million.
What is the period of performance?
Start: 2025-09-01. End: 2025-09-30.
What is the specific justification for excluding other sources in this full and open competition?
The justification for excluding other sources, despite the 'full and open' designation, needs further clarification. Typically, this might involve specific technical requirements, existing infrastructure integration, or unique service capabilities that only a limited number of vendors can meet. Understanding this rationale is key to assessing if the competition truly maximized value or if it inadvertently restricted the bidder pool.
How does the per-unit cost of these consolidated shipments compare to industry benchmarks for similar government contracts?
A detailed analysis of the per-unit cost against industry benchmarks for consolidated shipments is essential. Given the $44.8 million value over 29 days, the average cost per shipment needs to be evaluated. Benchmarking against contracts with similar volume, delivery speed requirements, and geographic scope will determine if the government is receiving competitive pricing or if there's potential for cost savings.
What are the key performance indicators (KPIs) for this contract, and how will they be monitored to ensure effectiveness?
Key performance indicators likely include on-time delivery rates, package integrity, tracking accuracy, and customer service responsiveness. The Department of Defense's contracting officers will monitor these KPIs through regular reporting from Federal Express and potentially through independent audits or user feedback. Effective monitoring ensures the government receives the contracted services reliably and efficiently.
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: $44,848,694
Exercised Options: $44,848,694
Current Obligation: $44,848,694
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HTC71123DC023
IDV Type: IDC
Timeline
Start Date: 2025-09-01
Current End Date: 2025-09-30
Potential End Date: 2025-09-30 00:00:00
Last Modified: 2025-11-07
More Contracts from Federal Express Corporation
- Civil Reserve AIR Fleet - AIR Transportation Services — $220.4M (Department of Defense)
- Civil Reserve AIR Fleet - AIR Transportation Services — $163.3M (Department of Defense)
- Civil Reserve AIR Fleet - AIR Transportation Services — $161.0M (Department of Defense)
- Civil Reserve AIR Fleet - AIR Transportation Services — $147.4M (Department of Defense)
- Civil Reserve AIR Fleet - AIR Transportation Services — $145.2M (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)