United Parcel Service CO.

United Parcel Service Co., doing business as United Parcel Service Co Air, operates as a subsidiary of United Parcel Service Inc. and delivers small package, parcel, mail, and specialized air transportation services to federal civilian and military agencies as a prime contractor competing under full-and-open procurement without SBA set-asides. The company is not a small business and holds no disadvantaged-business certifications; it competes on the strength of its logistics infrastructure and pricing across domestic delivery, international shipping, pharmaceutical and medical supply transportation, inmate property logistics, and Civil Reserve Air Fleet air cargo operations.

UPS Co Air's federal work divides into two distinct capability streams. The dominant stream comprises routine package delivery and mail services under the Next Generation Delivery Services 2 (NGDS 2) multiple-award IDIQ, a strategically sourced contract vehicle administered by USTRANSCOM. Recent representative awards include a $2.04 million delivery order from Veterans Integrated Service Network 17 (October 2026) for UPS Express small parcel shipping with completion through September 2030; a $7.53 million order from VISN 16 (October 2026) for domestic courier delivery services through September 2030; a $1.42 million order from the Department of Veterans Affairs for small package delivery to VISN 23 in Eagan, Minnesota (April 2026); a $3.876 million Social Security Administration delivery order for domestic and international parcel delivery through March 2027; and a $359 thousand order from the Chief Security Officer for commercial shipping through April 2029. The second stream is specialized Civil Reserve Air Fleet (CRAF) air cargo transportation for the Department of Defense Air Mobility Command. UPS holds an International Charter Airlift Services IDIQ valued at $8.65 million through September 2030 for time-definite international air freight supporting CRAF operations, with recent task orders including a $600 thousand delivery order for Operation Epic Fury services to the United Kingdom (May 2026), a $660 thousand order for Japan operations (March 2026), and a $560 thousand order to the United Kingdom (June 2026).

Customer concentration sits overwhelmingly with the Air Force Air Mobility Command, which accounts for $13.62 billion (91%) of the combined potential value across UPS's 5,410 total federal awards tracked in the source, versus the Office of the Secretary of Defense at $1.62 billion (9%). By award count, the Office of the Secretary of Defense leads with 642 awards, followed by the Federal Emergency Management Agency (428 awards for $14.3 million), the Department of the Air Force (236 awards), and multiple Veterans Integrated Service Networks including VISN 16 (135 awards, $31.6 million) and VISN 10 (130 awards, $31.2 million). This concentration divergence—where the Air Force dominates dollars but OSD leads by order volume—reflects the scale gap between large CRAF airlift contracts and numerous smaller facility-level delivery orders across civilian agencies.

UPS Co Air places work exclusively through two parent vehicles. The USTRANSCOM Next Generation Delivery Service 2017-2022 IDIQ carries 2,745 task orders valued at $1.53 billion, and the Next Generation Delivery Services 2 (current) holds 1,582 task orders valued at $798.6 million. Task order awards flow continuously from Veterans Integrated Service Networks across all VA healthcare sites, federal correctional institutions (Bureau of Prisons, Federal Correctional Complex facilities), FEMA regional offices, and civilian agencies including the Social Security Administration, Department of State Bureau of Consular Affairs, Department of Energy, National Transportation Safety Board, and the Environmental Protection Agency. Most task orders are micro-purchases or modest orders under $500 thousand; however, VISN-level annual delivery orders frequently range from $300 thousand to $800 thousand for comprehensive facility-level small package and mail services.

UPS Co Air's recent activity shows modest decline year over year: 461 awards in 2022, rising to 718 in 2023, then declining to 463 in 2024, 440 in 2025, and 229 in 2026 (year-to-date through October 12). Combined potential value across all awards stands at $17.2 billion; only $2.7 billion (16%) has been obligated to date. Within the next twenty-four months, 180 awards with a combined potential value of $47.5 million reach ultimate completion date and face recompete. SCI-reported invoicing totaled $96.7 million from FY2022 through FY2025 ($40.3 million in FY2022, declining to $19.6 million in FY2025), reflecting a subset of service-contract work above the $150,000 reporting threshold; SCI data shows zero FTE reporting across all years and zero subcontractor hour engagement, indicating UPS performs all federal work directly without named subs.

The majority of UPS Co Air's federal footprint sits on delivery and transportation services (4,642 awards under Couriers and Express Delivery Services NAICS 492110) and air freight operations (315 awards under Scheduled Freight Air Transportation). Within postal services (PSC 4145 Support-Administrative: Courier/Messenger), the vendor has 1,540 awards; within mailing and distribution (PSC 4146), 1,494 awards; and within air freight transportation (PSC 4610), 1,459 awards. Task orders span place of performance from facility-level inmate property shipping (Wildwood, Kentucky serves as the consolidated performance location for numerous federal correctional institutions) to VA medical centers nationwide to international CRAF operations across EUCOM, PACOM, CENTCOM, NORTHCOM, and AFRICOM theaters. UPS Co Air competes directly without set-asides across full-and-open federal procurement, leveraging its parent company's global logistics infrastructure and pre-negotiated firm-fixed-price rates under NGDS 2 to secure hundreds of routine delivery orders annually and anchor a multi-billion-dollar CRAF airlift relationship with the Air Force.