R602--UPS Ann Arbor | 6 Mo Bridge | POP: 4/1/26 - 9/30/26
Overview
Buyer
Place of Performance
NAICS
PSC
Set Aside
Original Source
Timeline
Qualification Details
Fit reasons
- NAICS alignment with historical contract wins in similar service areas.
- Scope strongly matches core technical capabilities and delivery model.
Risks
- Past performance thresholds may require one additional teaming partner.
- Potential clarification needed on staffing minimums before bid/no-bid.
Next steps
Validate eligibility requirements, assign capture owner, and schedule partner outreach to confirm teaming strategy before submission planning.
Quick Summary
The Department of Veterans Affairs (VA), specifically the Network Contract Office 10, has awarded a sole-source, firm-fixed-price contract to United Parcel Service Co. (UPS) for shipping and package delivery services at the Charles S. Kettles VA Medical Center (VAMC) in Ann Arbor. This $399,996.00 award covers a six-month bridge period from April 1, 2026, to September 30, 2026.
Scope of Work
UPS will provide comprehensive package pickup and delivery services for the Charles S. Kettles VAMC. This includes logistic support, delivery to patients and Community-Based Outpatient Clinics (CBOCs), and daily pickup/drop-off services at Medical Center campuses from Monday to Friday. The contract also requires expedited support for time-sensitive items, with deliveries potentially going to residential or commercial addresses.
Contract & Timeline
- Contract Type: Firm Fixed Price (FFP)
- Awardee: United Parcel Service Co. (UPS)
- Award Number: HTC711-23-D-C025 36C25026F0302
- Award Amount: $399,996.00
- Period of Performance: April 1, 2026 - September 30, 2026 (6-month bridge)
- Award Date: February 27, 2026
- Set-Aside: None (Sole-source justification due to inability to meet VA/SBA Rule of Two)
Evaluation
This award was made as a sole-source task order under the DoD TRANSCOM IDIQ GWAC contract HTC711-23-D-C025. The justification cites FAR 16.505(b)(2)(i)(B), indicating that only UPS is capable of providing the required unique or highly specialized services. Market research did not identify other capable small businesses, and the VA Rule of Two and SBA Rule of Two could not be met.
Additional Notes
This action aligns with OMB Memorandum M-17-29 (Best-in-Class mandatory solution for package delivery services) and VA Directive #7179 (utilization of Next Generation Delivery Service - NGDS). UPS was selected for offering the best overall value for Next Day and Residential Ground service in the VHA VISN 10 region, providing competitive pricing, specialized shipping expertise, and broader coverage compared to other NGDS GWAC vendors. The rates offered by NGDS contract holders (FedEx, UPS, Polar Air Cargo/DHL) have been competitively solicited and deemed fair and reasonable.