R604--Small Package Delivery (Chilli) | Follow on Base | Start: 4/1/26 PO#: 538C61063
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) has awarded a Firm Fixed-Price contract to United Parcel Service Co. (UPS) for Small Package Delivery services at the Chillicothe VA Medical Center (VAMC). This is a sole-source award under the DoD TRANSCOM IDIQ GWAC contract HTC711-23-D-C025, valued at an estimated $250,000.00. The contract was awarded on February 27, 2026, with services commencing April 1, 2026.
Scope of Work
The contract requires comprehensive package pickup and delivery services, including logistic support and direct delivery to patients and Community-Based Outpatient Clinics (CBOCs). Services involve daily pickups and drop-offs at VAMC campuses, Monday through Friday, with provisions for expedited support for time-sensitive items. Deliveries may be made to both residential and commercial addresses.
Contract Details
- Contract Type: Firm Fixed Price (FFP)
- Period of Performance: One year
- Estimated Ceiling Amount: $250,000.00
- Awardee: United Parcel Service Co. (UEI: YF8QFWJLNBV8)
- Award Date: February 27, 2026
- Start Date: April 1, 2026
- Set-Aside: Not applicable; awarded as a sole-source.
Evaluation & Justification
This award was made as a sole-source action, justified under FAR 16.505(b)(2)(i)(B). The justification states that only UPS is capable of providing the unique or highly specialized services required. Market research indicated that the "VA Rule of Two" could not be met, as there were not two or more capable Service-Disabled Veteran-Owned Small Businesses (SDVOSB) or Veteran-Owned Small Businesses (VOSB) concerns that expressed interest and were deemed capable.
Additional Notes
The Next Generation Delivery Service (NGDS) is designated as a mandatory Best-in-Class solution per OMB Memorandum M-17-29 and VA Directive #7179. UPS was selected based on providing the best overall value for Next Day and Residential Ground service in the region, offering competitive pricing, superior guarantees, and specialized shipping options. The rates offered by NGDS contract holders have been competitively solicited and determined to be fair and reasonable.