Next Generation Delivery Services 2 (NGDS 2)

The Department of the Air Force Air Mobility Command awarded Next Generation Delivery Services 2 (NGDS 2), a master IDIQ providing mandatory-use small package air and ground shipping for the federal government, on December 20, 2022, with ordering authority ending September 30, 2026—approximately two months remaining as of mid-July 2026. The vehicle is unrestricted with no set-aside designations; all 2,138 task orders awarded to date carry no set-aside designation.

The vehicle succeeds the original NGDS contract (awarded May 2017), which expired September 30, 2022. Task-order activity peaked in 2023 with 807 orders, then moderated to 563 orders in 2024, 575 in 2025, and 192 in 2026 through early September. The combined potential value across all task orders stands at $2.67 billion, with $2.34 billion obligated (88% of potential value).

NGDS 2 covers domestic shipments up to 150 pounds (up to 300 pounds between CONUS and Alaska, Hawaii, Puerto Rico, and within those regions) and international shipments up to 300 pounds. Services include time-definite door-to-door pickup and delivery, transportation, in-transit visibility, participation in the Government Third-Party Payment System, and customs clearance processing where applicable. Coverage must reach at least 95% of U.S. ZIP codes with daily pickup required from selected Defense Logistics Agency distribution depots.

Three primes hold the entire contract: Federal Express Corporation leads by potential value with $1.86 billion across 572 orders, while United Parcel Service CO. holds the most orders (1,511) valued at $753.3 million combined potential value. Polar Air Cargo Worldwide, Inc. rounds out the field with 55 orders and $49.2 million. FedEx dominates by dollar value; UPS by order volume. A broad customer base (274 agencies) places orders, but the Office of the Secretary of Defense concentrates significant value at $1.41 billion across 165 orders. Federal Emergency Management Agency, though with high order count (209), carries only $4.4 million in combined potential value. Task-order values range from micro-orders under $10,000 to large single awards exceeding $1.9 million, with typical durations spanning one to three years.

The NGDS program is a mandatory use contract, which provides small package air and ground shipping capability for the whole of Federal Government.