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FedEx, Polar Air Cargo & UPS Awarded $2.2B TRANSCOM Contract for Package Delivery Services

The U.S. Transportation Command has tapped FedEx, Polar Air Cargo Worldwide and United Parcel Service to handle package deliveries for government agencies and contractors under an indefinite-delivery/indefinite-quantity award worth $2.24 billion in total face value.

The Next Generation Delivery Service-2 program requires the awardees to provide domestic and international transportation of small packages during the IDIQ’s base performance period from April 1, 2023, to Sept. 30, 2026, the Department of Defense said Tuesday.

Services include door-to-door pickup and delivery, transportation and in-transit visibility. Customs clearance processing will also be covered if applicable.

According to a solicitation posted on SAM.gov in April, the contract has a four-year option period that would extend work until Sept. 30, 2030, if exercised, as well as a six-month extension if necessary.

TRANSCOM will obligate funds at the individual task order level of the firm-fixed-price rates contracts.

FedEx, Polar Air Cargo and UPS were selected out of four bids via a competitive online solicitation.

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