FedEx, UPS each win $2.35 billion contracts from DOD

Five-year agreement with each firm covers government-wide shipping services.

FedEx Corp. and United Parcel Service (UPS) were each award five-year contracts valued at $2.35 from the Department of Defense (DOD) for delivery services.

DOD's transportation purchasing unit, the United States Transportation Command (USTranscom) also issued a contract valued at just under $200 million to Polar Air Cargo.

All of the agreements, which begin Oct. 1, are part of the government’s effort to consolidate package delivery contracts under USTranscom. They cover domestic ground small package deliveries, as well as domestic and international express small package deliveries.

According to Aeroweb, a defense market intelligence website, FedEx was the 53rd largest DOD contractor and 79th overall government contractor in fiscal 2015. 

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