GSA awards $54.7M contract for pharmaceutical and medical supply management to Life Science Logistics LLC

Contract Overview

Contract Amount: $54,739,588 ($54.7M)

Contractor: Life Science Logistics LLC

Awarding Agency: General Services Administration

Start Date: 2019-11-18

End Date: 2026-11-17

Contract Duration: 2,556 days

Daily Burn Rate: $21.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: MANAGED SERVICES SUPPORT FOR GOVERNMENT-OWNED PHARMACEUTICAL, MEDICAL SUPPLIES, AND MEDICAL EQUIPMENT (SITE 2)

Place of Performance

Location: WHITESTOWN, BOONE County, INDIANA, 46075

State: Indiana Government Spending

Plain-Language Summary

General Services Administration obligated $54.7 million to LIFE SCIENCE LOGISTICS LLC for work described as: MANAGED SERVICES SUPPORT FOR GOVERNMENT-OWNED PHARMACEUTICAL, MEDICAL SUPPLIES, AND MEDICAL EQUIPMENT (SITE 2) Key points: 1. Contract focuses on managed services for government-owned pharmaceutical, medical supplies, and equipment. 2. Awarded through full and open competition, indicating a broad market solicitation. 3. The contract duration is over 7 years, suggesting a long-term need for these services. 4. Fixed-price contract type aims to control costs and provide predictable spending. 5. The contract is a definitive contract, typically used for specific requirements. 6. The base award amount is substantial, reflecting the scale of the managed services required.

Value Assessment

Rating: good

The contract's value of $54.7 million over approximately 7 years suggests a significant investment in supply chain management for critical medical items. Benchmarking this against similar managed logistics contracts for government medical supplies is challenging without more specific service details. However, the firm-fixed-price structure is generally favorable for the government in controlling costs, assuming the scope of work is well-defined and Life Science Logistics LLC can efficiently manage the operations within the agreed price. The base award amount of $21.4 million indicates the initial commitment, with potential for growth up to the ceiling.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit offers. The presence of two bidders suggests a competitive environment, though the exact number of proposals received and the evaluation process details are not provided. A competitive award generally leads to better price discovery and potentially more innovative solutions for the government.

Taxpayer Impact: Full and open competition is the most advantageous for taxpayers as it maximizes the potential for cost savings and ensures the government receives the best value by considering a wide range of qualified contractors.

Public Impact

The primary beneficiaries are government agencies requiring efficient management of pharmaceutical, medical supplies, and equipment. Services delivered include warehousing, inventory management, and distribution of critical medical items. The contract is located in Indiana (Site 2), indicating a specific geographic focus for operations. This contract supports the government's ability to maintain readiness and respond to healthcare needs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if scope creep occurs within the firm-fixed-price structure.
Dependence on a single contractor for critical medical supply chain functions.
Limited visibility into the contractor's operational efficiency without detailed performance metrics.

Positive Signals

Firm-fixed-price contract type provides cost certainty for the government.
Awarded through full and open competition, suggesting a competitive process.
Long contract duration allows for stable and predictable service delivery.
The contractor is responsible for managing government-owned assets, potentially reducing government overhead.

Sector Analysis

This contract falls within the Warehousing and Storage sector, specifically supporting the logistics and management of pharmaceutical and medical supplies. The market for specialized medical logistics is critical for government operations, particularly in healthcare and defense readiness. Comparable spending benchmarks would involve analyzing other government contracts for similar managed logistics services, which often involve significant value due to the sensitive nature and regulatory requirements of medical supplies. The North American Industry Classification System (NAICS) code 493110 (General Warehousing and Storage) indicates the broad category, but the specific application to medical supplies adds a layer of complexity and specialization.

Small Business Impact

This contract was not set aside for small businesses, and the data does not indicate any specific subcontracting requirements for small businesses. The award to Life Science Logistics LLC, a company that may or may not be a small business itself, means that opportunities for small business participation would likely depend on the prime contractor's subcontracting plan, if any. Without explicit set-aside provisions or reported subcontracting goals, the direct impact on the small business ecosystem is unclear.

Oversight & Accountability

Oversight for this contract would typically be managed by the General Services Administration (GSA), specifically the Federal Acquisition Service. Mechanisms likely include contract performance reviews, regular reporting requirements from the contractor, and potentially site visits to ensure compliance with terms and conditions. Transparency is facilitated through contract award databases, but detailed operational oversight and accountability measures are internal to the agency and contractor relationship. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Federal Supply Schedule (FSS) contracts for medical supplies
Department of Defense medical logistics programs
Veterans Affairs medical supply chain management
Strategic National Stockpile management

Risk Flags

Long contract duration may lead to price inflexibility over time.
Dependence on a single contractor for critical medical supply chain functions.
Potential for scope creep if requirements are not clearly defined and managed.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $54.7 million to LIFE SCIENCE LOGISTICS LLC. MANAGED SERVICES SUPPORT FOR GOVERNMENT-OWNED PHARMACEUTICAL, MEDICAL SUPPLIES, AND MEDICAL EQUIPMENT (SITE 2)

Who is the contractor on this award?

The obligated recipient is LIFE SCIENCE LOGISTICS LLC.

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $54.7 million.

What is the period of performance?

Start: 2019-11-18. End: 2026-11-17.

What is the historical spending pattern for managed pharmaceutical and medical supply logistics by the GSA?

Analyzing historical spending patterns for managed pharmaceutical and medical supply logistics by the GSA requires access to detailed procurement data over multiple fiscal years. Generally, government spending in this area tends to be consistent, driven by ongoing operational needs for healthcare facilities, research, and emergency preparedness. Fluctuations can occur due to specific public health events (like pandemics), changes in inventory strategies, or the consolidation or expansion of government medical facilities. Without specific historical data for this particular contract or similar managed logistics services, it's difficult to provide precise figures. However, the trend is typically towards ensuring supply chain resilience and cost-effectiveness through long-term contracts with specialized providers like Life Science Logistics LLC.

How does the per-unit cost of services under this contract compare to industry benchmarks for similar medical logistics?

Determining the per-unit cost comparison for this contract against industry benchmarks is challenging without specific details on the services rendered and their associated unit metrics (e.g., cost per pallet stored, cost per order fulfilled, cost per mile for delivery). The contract is a firm-fixed-price award, which aims to provide cost certainty. However, the overall contract value of $54.7 million is a total ceiling, not necessarily the amount spent. To benchmark, one would need to know the actual volume of services provided and compare the resulting unit costs to those charged by private sector logistics providers specializing in pharmaceuticals and medical equipment. Factors like regulatory compliance, security requirements, and the government's specific inventory management protocols can influence these costs, potentially making direct comparisons difficult.

What is Life Science Logistics LLC's track record with government contracts, particularly in medical logistics?

Life Science Logistics LLC has a history of performing government contracts, including those related to medical logistics and supply chain management. Their experience often involves handling pharmaceuticals, medical supplies, and equipment for various federal agencies. A review of public contract databases would reveal the number and value of contracts they have held, their performance ratings (if available), and any past performance issues or awards. Their ability to secure this significant GSA contract suggests a demonstrated capability and a positive track record in managing complex logistics operations that meet government standards for reliability, security, and compliance within the healthcare supply chain.

What are the key performance indicators (KPIs) used to measure the success of this contract?

Key performance indicators (KPIs) for a managed services contract like this typically focus on operational efficiency, reliability, and cost control. Common KPIs would likely include on-time delivery rates, order accuracy, inventory accuracy (e.g., cycle count variance), warehouse space utilization, response times to requisitions, and compliance with temperature and handling requirements for pharmaceuticals. For a firm-fixed-price contract, adherence to budget and avoidance of cost overruns related to operational inefficiencies are also critical. The government would monitor these KPIs through contractor reports, audits, and potentially performance evaluations to ensure Life Science Logistics LLC is meeting the contract's objectives and delivering value.

What is the potential risk associated with the long duration (over 7 years) of this contract?

The long duration of this contract, spanning over 7 years, presents several potential risks. Firstly, there's the risk of technological obsolescence; the logistics and inventory management systems used by the contractor might become outdated over time, requiring upgrades that could impact costs or efficiency. Secondly, market conditions and pricing for logistics services can change significantly over such a period, potentially leading to the government paying above-market rates if the fixed price doesn't adequately account for future inflation or competitive shifts. Thirdly, long-term reliance on a single provider can reduce flexibility and make it harder for the government to adapt to changing needs or to quickly switch to a potentially better-performing vendor if issues arise. Robust contract management and periodic reviews are essential to mitigate these risks.

Industry Classification

NAICS: Transportation and Warehousing › Warehousing and Storage › General Warehousing and Storage

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 47QFCA19R0036

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Life Science Logistics, LLC

Address: 2600 REGENT BLVD, DALLAS, TX, 75261

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $89,727,441

Exercised Options: $68,385,515

Current Obligation: $54,739,588

Actual Outlays: $26,025,356

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline