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Defense Department Awards Contracts to FedEx, UPS, Alaska Air

Paul Ausick

The U.S. Department of Defense announced on Thursday the award of more than a dozen contracts for everything from environmental rehabilitation work to repair and maintenance work for missiles going to various governments around the world. We’re highlighting a few here.

The Defense Department’s Transportation command awarded five companies maximum three-year contracts for domestic and international delivery services. The contracts call for international express delivery of the federal government, the Defense Department, civilian federal agencies and cost-reimbursable contractors for shipments up to 300 pounds. The first contract year begins on October 1, 2014, and may be renewed with two one-year options. FedEx Corp. (FDX) and United Parcel Service Inc. (UPS) each received maximum awards of $617.33 million. A division of Alaska Air Group Inc. (ALK), National Air Cargo and Polar Air Cargo each received a maximum award of $203.37 million.

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FedEx also received a $51.2 million option renewal for a contract to pack and transport perishable subsistence to the Pacific region. The total value of the contract, of which is the third renewal, rises to $190.1 million.

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