DOD awards $5 billion in delivery service contracts to FedEx, UPS and Polar Air Cargo

Press Release – April 26, 2017

U.S. TRANSPORTATION COMMAND

Federal Express Corp., Memphis, Tennessee, was awarded a five-year $2,351,165,436 (estimated) indefinite-delivery/indefinite-quantity, fixed-price next generation delivery service contract. This contract provides express small package delivery services for international shipments and express and ground small package delivery services for domestic shipments. Service shall be provided for the federal government, contractors who have a cost-reimbursable contract line item number under another government contract which includes transportation of small packages, and other authorized users. Services required include time-definite, door-to-door pickup and delivery, transportation, timely and accurate in-transit visibility, and customs clearance processing (if applicable). This contract may include shipments of foreign military sales. Work will be performed internationally and domestically, with an expected completion date of Sept. 30, 2022. Fiscal 2017 transportation working capital funds in the amount of $1,500 are being obligated at time of award as a minimum guarantee per awardee; remaining funds will be obligated on individual task orders. This contract was a competitive acquisition and three offers were received. The U.S. Transportation Command, Directorate of Acquisition, Scott Air Force Base, Illinois, is the contracting activity (HTC711-17-D-C001).

United Parcel Service Co., Louisville, Kentucky, was awarded a five-year $2,350,140,238 (estimated) indefinite-delivery/indefinite-quantity, fixed-price next generation delivery service contract. This contract provides express small package delivery services for international shipments and express and ground small package delivery services for domestic shipments. Service shall be provided for the federal government, contractors who have a cost-reimbursable contract line item number under another government contract which includes transportation of small packages, and other authorized users. Services required include time-definite, door-to-door pickup and delivery, transportation, timely and accurate in-transit visibility, and customs clearance processing (if applicable). This contract may include shipments of foreign military sales. Work will be performed internationally and domestically, with an expected completion date of Sept. 30, 2022. Fiscal 2017 transportation working capital funds in the amount of $1,500 are being obligated at time of award as a minimum guarantee per awardee; remaining funds will be obligated on individual task orders. This contract was a competitive acquisition and three offers were received. The U.S. Transportation Command, Directorate of Acquisition, Scott Air Force Base, Illinois, is the contracting activity (HTC711-17-D-C003).

Polar Air Cargo Worldwide Inc., Purchase, New York, was awarded a five-year $199,006,989 (estimated) indefinite-delivery/indefinite-quantity, fixed-price next generation delivery service contract. This contract provides express small package delivery services for international shipments. Service shall be provided for the federal government, contractors who have a cost-reimbursable contract line item number under another government contract which includes transportation of small packages, and other authorized users. Services required include time-definite, door-to-door pickup and delivery, transportation, timely and accurate in-transit visibility, and customs clearance processing (if applicable). This contract may include shipments of foreign military sales. Work will be performed internationally and domestically, with an expected completion date of Sept. 30, 2022. Fiscal 2017 transportation working capital funds in the amount of $1,500 are being obligated at time of award as a minimum guarantee per awardee; remaining funds will be obligated on individual task orders. This contract was a competitive acquisition and three offers were received. The U.S. Transportation Command, Directorate of Acquisition, Scott Air Force Base, Illinois, is the contracting activity (HTC71117DC002).

Source: U.S. DEPARTMENT OF DEFENSE

One thought on “DOD awards $5 billion in delivery service contracts to FedEx, UPS and Polar Air Cargo

  1. Union and NAME of Local/Branch
    Ernest Johnson
    Past or current office held, if any
    Local #78 Retiree Chapter, President
    View from the future 2020- Forever? Why would they bid when the USPS will be the guarantor of the revenue earned by the Big Three (3)! Remember this scenario is already in place and used for years even now! Quid Pro Quo a better term for you move mine and we will deliver yours the last leg or another term is Sure Post.
    In many rural areas USPS finish the delivery from UPS through the USPS system everyday nationwide.

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