R602--Cleveland Small Package Delivery (UPS) | Follow on Base | Start: 4/1/26

Justification and Approval for Exception to Fair Opportunity Memo

This document justifies a sole-source task order against the DoD TRANSCOM IDIQ GWAC contract HTC711-23-D-C025 with United Parcel Service Co. (UPS). The action is for one year of firm-fixed-price shipping and package delivery services for the Louis Stokes VA Medical Center and its associated facilities.

• Package pickup and delivery services.

• Logistic support and delivery to patients, CBOC's, and Medical Centers campuses.

• Daily pickup and drop-off, Monday-Friday.

• Expedited support for time-sensitive items.

• Delivery to residential and commercial addresses.

• Contract Type: Firm Fixed Price (FFP)

• Period of Performance: One year

• Estimated Ceiling: $370,000.00 (bulk funded)

This is a justification for a sole-source award, not a solicitation for proposals. The justification cites FAR 16.505(b)(2)(i)(B) as the statutory authority, stating that only one awardee is capable of providing the unique or highly specialized services required.

• The document discusses the "VA Rule of Two" and "SBA Rule of Two" and concludes that these cannot be met for this requirement due to a lack of capable SDVOSB or VOSB concerns expressing interest.

• Market research was conducted, including an RFI, but no suitable small business participants were identified.

• The action is in accordance with OMB Memorandum M-17-29 (Next Generation Delivery Service - NGDS as a Best-in-Class solution) and VA Directive #7179.

• UPS was selected based on providing the best overall value for Next Day and Residential Ground service in the VHA VISN 10 region compared to other NGDS GWAC vendors.

• UPS offers superior service, time-sensitive shipping expertise, specialized handling, and a stronger guarantee on ground shipments.

Solicitation / RFP / RFQ

This document appears to be an award notice for a follow-on contract for small package delivery services, specifically referencing a previous solicitation number (541-26-3-037-0006) and an award number (HTC711-23-D-C025 36C25026F0320). The service is for the Cleveland Small Package Delivery (UPS) Base, with a start date of 4/1/26.

While the full solicitation details are not provided in this extract, the subject indicates the requirement is for "Cleveland Small Package Delivery (UPS) | Follow on Base". The Product Service Code (PSC) is R602 and the NAICS Code is 492110 (Couriers and Messengers).

• Award Number: HTC711-23-D-C025 36C25026F0320
• Award Date: 02-27-2026
• Awardee Name: UNITED PARCEL SERVICE CO.
• Award Amount: $545,000.00
• Period of Performance Start: 4/1/26

Not applicable, as this document is an award notice.

Not specified in the provided text.

• The Contracting Office is Network Contracting Office (NCO 10) in Kettering, OH (ZIP 45409-1337).
• The Point of Contact for questions is Venkatlekhith Muntha (Venkatlekhith.Muntha@VA.gov, 937-268-6511).
• Two additional documents are referenced: "JEFO - Pescrilli - 0003" and "JEFO - Pescrilli - 0006".

Justification and Approval for Exception to Fair Opportunity Memo

This document justifies a sole-source task order against the Department of Defense (DoD) TRANSCOM IDIQ GWAC contract HTC711-23-D-C025 with United Parcel Service Co. (UPS). The action is for a one-year firm-fixed-price contract for shipping and package delivery services for the Louis Stokes VA Medical Center.

• Package pickup and delivery services at the Louis Stokes VA Medical Center.

• Services include logistic support, delivery to patients and CBOCs, daily pickup and drop-off (Monday-Friday), and expedited support for time-sensitive items.

• Delivery addresses may be residential or commercial.

• Contract Type: Firm Fixed Price (FFP)

• Period of Performance: One year

• Estimated Ceiling: $350,000.00 (bulk funded, vendor to bill for actual services rendered).

This document is a justification for a sole-source award, not a solicitation for proposals. The justification cites FAR 16.505(b)(2)(i)(B) as the statutory authority, stating that only one awardee is capable of providing the unique or highly specialized services required.

• The document discusses market research and the "VA Rule of Two" for small business set-asides, concluding that the requirement cannot be met by two or more capable SDVOSB or VOSB concerns, nor by two or more concerns of any particular socioeconomic class.

• The Next Generation Delivery Service (NGDS) is identified as a mandatory Best-in-Class solution.

• The action is being taken under the Next Generation Delivery Service (NGDS) program, which is a mandatory acquisition method for small package shipping.

• UPS was selected based on providing the best overall value for Next Day and Residential Ground service in the region, offering superior guarantees, specialized handling, and competitive pricing compared to other NGDS GWAC vendors.

• The rates offered by NGDS-2 contract holders (FedEx, UPS, Polar Air Cargo/DHL) have been competitively solicited and determined to be fair and reasonable.