UPS, FedEx Awarded Air Force Contracts

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PS and FedEx have been awarded contracts from the U.S. Air Force to help support the Civil Reserve Air Fleet program, the Associated Press reported Monday.

Under the contract, UPS and FedEx will provide emergency airlift support for the Department of Defense in the event that military aircraft alone cannot fulfill the department’s needs.

The UPS contract, worth at least $25 million, could pay as up to $119 million, while the FedEx contract is worth at least $185 million and could pay up to $1.02 billion, AP said.

In early September, AP reported that the Army awarded the two parcel delivery companies delivery contracts for the Defense Logistics Agency’s surface small package program. (Click here for previous coverage.)

UPS and FedEx are respectively ranked No. 1 and No. 2 on the Transport Topics 100 list of the largest for-hire carriers in the United States and Canada.