Operations

FedEx, UPS each win $2.35 billion contracts from DOD

May 8, 2017

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 53^rd largest DOD contractor and 79^th overall government contractor in fiscal 2015.

About the Author

Neil Abt

Neil Abt, editorial director at Fleet Owner, is a veteran journalist with over 20 years of reporting experience, including 15 years spent covering the trucking industry. A graduate of American University in Washington, D.C., he began his career covering sports for The Washington Post newspaper, followed by a position in the newsroom of America Online (AOL) and then both reporting and leadership roles at Transport Topics. Abt is based out of Portland, Oregon.