GSA has awarded United Parcel Service a contract for express and ground domestic delivery that it says could save up to $1 billion over the contract’s five-year duration.
According to GSA, a team of government agency representatives developed requirements for the contract that was open to vendors listed on the Federal Supply Schedule. It said the effort resulted in a program that eliminates duplicate efforts and achieves savings greater than any one agency could have managed on its own.
"This second-generation Federal Strategic Sourcing Initiative contract offers shipping costs that provide deep discounts for participating agencies off commercial retail rates," said the commissioner of GSA’s Federal Acquisition Service, James Williams.
Under the contract, UPS will collect and analyze data to identify new opportunities for savings. GSA said costs are projected to be 6 percent lower than under a previous delivery contact – the first award under the Federal Strategic Sourcing Initiative Program.