Next Generation Delivery Services Contract Awarded April 27, 2017
The Department of Defense's United States Transportation Command awarded a government-wide package delivery services contract (Next Generation Delivery Services - NGDS) valued at over $2 billion, to Federal Express Corporation, United Parcel Service, and Polar Air Cargo (primary subcontractor DHL) on April 26, 2017.
The government-wide contract is a best-in-class contract for domestic and international express small package delivery services, and domestic ground small package delivery services. Contract performance will begin Oct. 1, 2017.
The contract represents the federal government's acquisition approach to consolidate federal package delivery contracts into one government-wide contract under the purview of DoD's U.S. Transportation Command, a specialized buyer of transportation services on a global scale. NGDS is a fundamental change in acquiring package delivery services and capitalizes on key principles: leveraging the federal government's buying power; reducing the number of contract vehicles; and strengthening demand management practices.
The contract is a result of collaborative efforts of an interagency team of DoD and executive agency representatives, working together to design a government -wide solution based on the principles of category management .