FedEx ISP Workbook
As previously noted, FedEx is currently undergoing a nationwide transition to an “ISP” model and contract. Over the next 4 years, FedEx IC contractors will be gradually transitioning to this new contract according to the timeline FedEx has set forth. FedEx contractors who are unfamiliar with the new ISP contract will naturally have many questions about what this new contract will mean for their business. FedEx has put forth a comprehensive workbook which details the the new ISP Agreement and corresponding differences from the old contract.
In short, FedEx has summarized the ISP agreement as follows:
The transition to the ISP Agreement will result in changes to the way contractual agreements are reached, the definition of service areas, and the structure of the relationship between FedEx Ground and businesses. A brief overview of the ISP Agreement and of some of the changes that will occur during the transition are summarized here.
The ISP Agreement is a negotiated contract between a business and FedEx Ground that includes a range of negotiable financial and non-financial terms that are unique to the CSP’s business and service area, with a term of up to three years. A sample ISP Agreement is provided on MyGroundBiz.com. CSPs will receive a copy of the current fiscal-year sample ISP Agreement when their district transitions.
ISP Agreement negotiations is a multi-step process explained in the Negotiations section of the Workbook.
ISP Agreement terms
Under the terms of an ISP Agreement, a CSP agrees to provide service in its defined service area and is responsible for the manner, means and methods of operating the business as relating to the pickup and delivery of packages during the negotiated contract term. The CSP has flexibility and freedom to make all business decisions related to vehicles, equipment, staffing and personnel scheduling, among other matters, per the mutually agreed-upon terms of an ISP Agreement and as referenced on http://mygroundbiz.com.
-Independent Service Provider (ISP) Transition Workbook