One of the Positives for the Leaner, Meaner UPS

GSA Delivers Federal Shipping Contract to UPSKO'd

Potential Savings to Exceed $1 Billion Over Five Years

GSA # 10629

September 1, 2009
Contact: Judy Boysha, (202) 501-1231

WASHINGTON — The U.S. General Services Administration announced it has awarded a contract for express and ground domestic delivery services to United Parcel Service. The contract aims to save taxpayers more than a billion dollars over the next five years.

“This second-generation Federal Strategic Sourcing Initiative contract offers shipping costs that provide deep discounts for participating agencies off commercial retail rates,” said Commissioner James A. Williams of GSA’s Federal Acquisition Service. “The contract award exemplifies the value of governmentwide strategic sourcing.”

To develop the domestic delivery service contract, a team of government agency representatives developed a consolidated set of requirements and pooled shipping volume in a competitive bid process open to vendors listed on the Federal Supply Schedule. The coordinated effort resulted in a program that eliminates duplicate efforts and provides savings greater than any one agency could achieve on its own.

The previous contract was the first award under the Federal Strategic Sourcing Initiative Program and saved taxpayers $180 million in fiscal year 2008. Additionally, the new award contract costs are projected to be 6 percent lower than costs on the previous contract. The award also enables operating efficiencies for the federal government by collecting and analyzing business intelligence data to identify further savings opportunities.


Founded in 1949, GSA manages more than 11 percent of the government’s total procurement dollars and $24 billion in federal assets, including 8,600 government-owned or leased buildings and 213,000 vehicles.

GSA helps preserve our past and define our future, as a steward of more than 480 historic properties, and as manager of, the official portal to federal government information and services.

GSA’s mission to provide superior workplaces, expert technology solutions, acquisition services, purchasing and E-Gov travel solutions and management policies, at best value, allows federal agencies to focus on their core missions.

Did You Know? Although GSA leverages billions of dollars in the marketplace, only 1 percent of the agency’s total budget is provided through direct congressional appropriations.