The US Department of Defense has awarded one-year contracts to FedEx Express, UPS and Polar AirCargo worth $171 million each for package delivery along with a separate near-$50 million contract
to FedEx for transportation of perishables to bases in the Pacific.The US Transportation Command contracted the three companies to perform a second option-year outof possible four years under an indefinite delivery/indefinite quantity fixed-price contracts toperform Worldwide Express 5 (WWX-5) small package delivery services for the military. The threecontracts will run from October 1, 2013, until September 30, 2014.
In addition, FedEx has won a second contract worth $49.8 million and running for the sameone-year period, under which it will perform ‘overpacking’ and transportation of perishablesubstances in support of the Defense Commissary Agency and Defense Logistics Agency. This includescold-chain packing, logistics and international air deliveries of primarily fresh fruits andvegetables from the US West Coast to various Pacific locations in Japan, Korea, Guam andAlaska.
The agreements are among 35 separate contracts with a combined value of $1.78 billion that theUS Defense Department announced last Friday with the shipping costs making up about 32% of thespending.
