OMB mandates hallway for packages

Federal agencies must now use the contract on the General Services Administration's Acquisition Gateway for all package shipping, according to a July 27 Office of Management and Budget memo.

The new policy applies to all small packages sent via global air and ground, OMB said. The policy, which is effective immediately, uses GSA’s Transportation and Logistics Services hallway to help reduce the number of shipping contracts across the federal government.

The hallway is managed by the Defense Department's U.S. Transportation Command, which handles a portfolio of domestic and international transportation solutions, OMB said.

The Transportation Command is one of 10 category managers tapped by OMB to oversee the most common federal nondefense spending categories. There are 19 hallways in all, including six for IT.

Agencies must transition to the contract by Oct. 1. Chief acquisition officers and senior procurement executives are required to develop their transition plans and submit them to the Transportation and Logistics Services category manager by Sept. 1.

OMB said the move will cut down on the proliferation of individual air and package shipping contracts at federal agencies. The government spends over $358 million for domestic and international package delivery services, with nearly 90 percent going to just three vendors, according to OMB. Furthermore, the existence of 100 separate federal contracts, which all have different requirements and pricing, means the government has not been able to capitalize on its buying power.