FedEx (NYSE:FDX) is extending its partnership with the mail and package delivery wing of the government. The company announced that its FedEx Express subsidiary has signed a new air-transportation contract with the U.S. Postal Service that effectively prolongs the two organizations' existing agreement for another seven years.

FedEx said the contract is valued at roughly $10.5 billion. It obligates FedEx Express to provide airport-to-airport transportation of the Postal Service's express and priority mail offerings.

The current contract ends in September; the just-signed accord will come in force the following month.

In the press release announcing the new agreement, the company quoted FedEx Express CEO David Bronczek as saying that it "provides enhanced value and additional flexibility allowing the USPS to respond to possible changes."

Fool contributor Eric Volkman has no position in FedEx. The Motley Fool recommends FedEx. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.