FEDEX, UPS, Polar Air Win $5 Billion US DoD Small Shipments Deal Including FMS Contracts

Federal Express, United Parcel Service (UPS) and Polar Air Cargo (PAC) together have been awarded close to $5 Billion in Small Shipments Deal by the US Department of defense.

Federal Express was awarded a five-year $2.3 billion (estimated) contract.  United Parcel Service was awarded a five-year $2.3 billion (estimated) service contract and PAC was awarded $200 million in a similar service contract, US DoD said in a statement Wednesday.

All the contracts provide 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, the statement said.

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. 

This contract was a competitive acquisition and three offers were received.