United Parcel Service CO.

United Parcel Service Co., doing business as United Parcel Service Co Air, operates as a wholly owned child of United Parcel Service Inc. and delivers small package and express delivery services, mail postage and shipping, medical supply and pharmacy transportation, and specialized courier services to federal civilian and military agencies as a prime contractor competing in full-and-open procurement without set-asides. The company is not a small business and does not hold SBA certifications.

UPS Air's federal footprint concentrates heavily in logistics and transportation delivery across two distinct capability domains. In civilian agency logistics, the company provides small package delivery, mail services, and specialized transportation to the Department of Veterans Affairs across all Veterans Integrated Service Networks, the Federal Emergency Management Agency, the Department of Justice, and federal correctional institutions, predominantly through the Next Generation Delivery Services 2 (NGDS 2) indefinite delivery vehicle. In military air transportation, UPS holds an $8.65 million Civil Reserve Air Fleet (CRAF) contract with the U.S. Air Force's Air Mobility Command through September 30, 2030, under which it operates specialized charter airlift services including the transport of human remains and escorts from Dover Air Force Base across North America and international locations in Poland, Germany, Norway, Bahrain, and Japan. Representative civilian work includes a $928 thousand delivery order from the Department of Agriculture's Food and Nutrition Service for NGDS 2 package delivery (August 2026), a $1.875 million Social Security Administration delivery order for domestic and international small parcel services (March 2026), a $359.2 thousand order from the Chief Security Officer for commercial shipping and delivery (April 2026), and a $1.95 million Department of Veterans Affairs order for delivery services through the VA Strategic Acquisition Center Frederick (April 2026). Representative military airlift work includes a $660 thousand CRAF delivery order for air transportation services in Japan (March 2026), a $350 thousand order for services in Poland (January 2026), and a $689.8 thousand order for services in Bahrain (October 2025).

Customer concentration splits between volume and dollars. By award count, the Office of the Secretary of Defense leads with 635 awards (29% of the recent portfolio), followed by the Federal Emergency Management Agency (400 awards) and the Department of the Air Force (236 awards), though these three account for only a portion of UPS's total 5,327 awards across 326 customer agencies. By potential dollar value, the Department of the Air Force's Air Mobility Command dominates with $13.62 billion in combined potential value (80% of portfolio value), reflecting the CRAF contract's scale, followed by the Office of the Secretary of Defense at $1.59 billion and Veterans Integrated Service Network 15 at $345 million. This divergence reflects the Air Force airlift contract's outsized dollar contribution relative to the high volume of modest-value delivery orders placed by civilian agencies.

UPS holds two primary vehicle positions. The USTRANSCOM Next Generation Delivery Service 2017–2022 (NGDS predecessor) generated 2,744 task orders valued at $1.53 billion, and the successor Next Generation Delivery Services 2 (NGDS 2) generated 1,510 task orders worth $752.5 million. These two vehicles alone account for approximately 81% of UPS's award count. The company also sits on the International Charter Airlift Services in support of the Civil Reserve Air Fleet IDV, a multiple-award vehicle, through which 16 delivery orders totaling $7.37 million have been issued to date against the $8.65 million ceiling through 2030. A third vehicle, Indefinite Delivery Contract F1162693D0003, generated 142 task orders.

Activity has declined sharply in the most recent fiscal year. Awards per year ran at 461–717 between 2022 and 2023, dropped to 463 in 2024, fell to 435 in 2025, and plummeted to 152 in 2026 (source data through September 30, 2026). Combined potential value across all awards is $16.9 billion, with only $2.67 billion obligated to date (16% of potential). Within the next twenty-four months, 361 awards carrying $90 million in combined potential value are scheduled for completion, creating significant recompete exposure across both the legacy and successor NGDS vehicles.

The Service Contract Inventory dataset, which captures federal service contracts above the $150 thousand threshold, shows SCI-reportable invoiced revenue of $77 million across FY2022–FY2024 (FY2022: $40.3 million, FY2023: $22.5 million, FY2024: $14.3 million). SCI reports zero FTEs across all three fiscal years, reflecting the company's delivery-service business model in which labor is embedded in per-unit or per-shipment pricing rather than reported as hourly contracting. UPS does not use subcontractors on the SCI-reportable contracts in the dataset; all work is performed directly by company personnel. The SCI figures represent only federal service contracts above $150 thousand and exclude goods, products, micro-purchases, and non-federal revenue, so they understate the vendor's total federal and enterprise footprint significantly.

UPS competes entirely as a prime contractor in full-and-open, unrestricted federal procurement. The company does not pursue or rely on set-asides, small business certifications, or teaming arrangements with larger primes; it wins on capability and pricing as a global logistics incumbent with established relationships across civilian and military agencies. Its federal work spans 4,567 awards in the Couriers and Express Delivery Services NAICS category and another 312 awards in Scheduled Freight Air Transportation, with the remainder distributed across postal, charter, and motor-freight classifications. As a child entity of the publicly traded United Parcel Service Inc., UPS Co Air operates with substantial capital and operational scale to fulfill contract requirements across domestic and international locations.