GSA awards $74.8M contract for managed pharmaceutical and medical supply services to Metro Logics Inc

Contract Overview

Contract Amount: $74,781,911 ($74.8M)

Contractor: Metro Logics Inc

Awarding Agency: General Services Administration

Start Date: 2019-11-18

End Date: 2026-11-17

Contract Duration: 2,556 days

Daily Burn Rate: $29.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: THIS CONTRACT PROVIDES MANAGED SERVICE SUPPORT FOR GOVERNMENT-OWNED PHARMACEUTICALS, MEDICAL SUPPLIES AND MEDICAL EQUIPMENT.

Place of Performance

Location: SALT LAKE CITY, SALT LAKE County, UTAH, 84104

State: Utah Government Spending

Plain-Language Summary

General Services Administration obligated $74.8 million to METRO LOGICS INC for work described as: THIS CONTRACT PROVIDES MANAGED SERVICE SUPPORT FOR GOVERNMENT-OWNED PHARMACEUTICALS, MEDICAL SUPPLIES AND MEDICAL EQUIPMENT. Key points: 1. Contract focuses on essential managed services for pharmaceuticals, medical supplies, and equipment. 2. The contract duration is over 7 years, indicating a long-term need for these services. 3. Awarded through full and open competition, suggesting a competitive bidding process. 4. The contract type is Firm Fixed Price, which helps in cost control and predictability. 5. The North American Industry Classification System (NAICS) code 493120 points to warehousing and storage services. 6. The contract is a Definitive Contract, typically used for straightforward service requirements. 7. The contractor, Metro Logics Inc., is based in Utah, potentially indicating regional service delivery.

Value Assessment

Rating: good

The contract value of $74.8 million over approximately 7 years suggests a significant investment in managed logistics for medical supplies. Benchmarking this against similar contracts for pharmaceutical and medical equipment warehousing is challenging without more specific service details. However, the firm fixed-price structure provides cost certainty for the government. The relatively low number of bids (3) in a full and open competition might warrant further investigation into market dynamics or potential barriers to entry.

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 a bid. Three bids were received for this requirement. While three bidders indicate some level of competition, it is on the lower end for a contract of this magnitude and duration. This could suggest that the market for specialized managed logistics services for pharmaceuticals and medical equipment is concentrated among a few key players, or that the requirements were highly specific.

Taxpayer Impact: A competitive process, even with a limited number of bidders, generally helps ensure that the government receives a fair price. However, with only three bids, taxpayers may not have benefited from the most aggressive pricing possible compared to a scenario with more robust competition.

Public Impact

The primary beneficiaries are government agencies requiring reliable management of pharmaceuticals, medical supplies, and equipment. Services delivered include managed support for these critical medical resources, ensuring availability and proper handling. The contract is based in Utah (ST: UT, SN: UTAH), suggesting a primary operational focus or contractor location within this state. The contract supports the government's ability to maintain essential medical stockpiles and operational readiness.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited number of bidders (3) in a full and open competition could indicate potential market concentration or specialized requirements.
The specific nature of 'managed service support' for pharmaceuticals and medical equipment requires careful performance monitoring to ensure efficacy and compliance.

Positive Signals

Awarded through full and open competition, maximizing potential sources.
Firm Fixed Price contract type provides cost predictability and limits the government's exposure to cost overruns.
Long contract duration (over 7 years) suggests a stable, ongoing need and potential for contractor efficiency gains over time.

Sector Analysis

This contract falls within the broader logistics and supply chain management sector, specifically focusing on specialized services for the healthcare and pharmaceutical industries. The NAICS code 493120 (Refrigerated Warehousing and Storage) highlights the critical infrastructure and handling requirements. The market for such services is substantial, driven by the need for secure, temperature-controlled storage and efficient distribution of sensitive medical goods. Comparable spending benchmarks would typically be found within government-wide contracts for medical supplies or logistics support services.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (SS: false, SB: false). Therefore, there are no direct subcontracting implications mandated by a small business set-aside. The primary contractor, Metro Logics Inc., will likely manage the entire scope of services. Opportunities for small businesses would typically arise if Metro Logics Inc. chooses to subcontract portions of the work, which is not explicitly detailed in the provided information.

Oversight & Accountability

Oversight for this contract would primarily fall under the General Services Administration (GSA), specifically the Federal Acquisition Service (FAS). As a Definitive Contract awarded under full and open competition, standard GSA procurement regulations and contract administration procedures would apply. Transparency is generally maintained through contract award databases like FPDS. Accountability measures would be tied to the performance metrics within the Firm Fixed Price contract, with potential for penalties or remedies for non-performance. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Federal Supply Schedule (FSS) contracts for medical equipment and supplies
Department of Defense medical logistics programs
Strategic National Stockpile management
GSA Public Buildings Service (PBS) logistics support

Risk Flags

Potential for supply chain disruption
Risk of temperature excursions impacting sensitive medical supplies
Data security and integrity of inventory management systems
Contractor performance and adherence to service level agreements

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $74.8 million to METRO LOGICS INC. THIS CONTRACT PROVIDES MANAGED SERVICE SUPPORT FOR GOVERNMENT-OWNED PHARMACEUTICALS, MEDICAL SUPPLIES AND MEDICAL EQUIPMENT.

Who is the contractor on this award?

The obligated recipient is METRO LOGICS INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $74.8 million.

What is the period of performance?

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

What is the track record of Metro Logics Inc. in managing government contracts, particularly those involving pharmaceuticals and medical supplies?

Information regarding Metro Logics Inc.'s specific track record with government contracts, especially those involving the sensitive handling of pharmaceuticals and medical supplies, is not detailed in the provided data. A comprehensive assessment would require reviewing their past performance on similar federal contracts, including any performance evaluations, past performance questionnaires, and any documented instances of outstanding performance or deficiencies. Understanding their experience with temperature-controlled logistics, regulatory compliance (e.g., FDA, DEA), and inventory management systems would be crucial. Without this specific performance history, it is difficult to definitively assess their capability and reliability for this significant contract.

How does the per-unit cost or service cost compare to industry benchmarks for similar managed logistics services?

The provided data does not include specific per-unit costs or detailed service breakdowns necessary for a direct comparison to industry benchmarks. The total contract value of $74.8 million over approximately 7 years ($10-11 million annually) represents the overall investment. To benchmark effectively, one would need to analyze the cost of specific services such as warehousing per cubic foot, inventory management per item, transportation per mile, or specialized handling fees for temperature-sensitive items. Comparing these granular costs against market rates for similar services provided by third-party logistics (3PL) companies specializing in healthcare and pharmaceuticals would be required. The Firm Fixed Price nature of the contract suggests that these benchmarks were likely considered during the bidding process.

What are the primary risks associated with this contract, and how are they being mitigated?

Key risks include potential disruptions in the supply chain for critical medical items, failure to maintain required storage conditions (e.g., temperature control), data security breaches related to inventory and tracking systems, and contractor performance issues. Mitigation strategies likely involve robust performance standards within the contract, regular government oversight and inspections, contingency planning for supply chain disruptions, and strict adherence to security protocols. The Firm Fixed Price structure incentivizes the contractor to manage costs and risks effectively. The long duration also presents a risk of technological obsolescence or changes in regulatory requirements that may need to be addressed through contract modifications or future procurements.

How effective is the current managed service support in ensuring the availability and integrity of government-owned pharmaceuticals and medical supplies?

The effectiveness of the current managed service support cannot be determined solely from the contract award data. Effectiveness would be measured by key performance indicators (KPIs) established within the contract, such as on-time delivery rates, inventory accuracy, temperature excursion incidents, and compliance with all relevant regulations. Regular performance reviews and audits conducted by the GSA would provide insights into the contractor's adherence to these KPIs. A history of successful contract performance, minimal stockouts, and consistent compliance would indicate high effectiveness, while recurring issues would suggest lower effectiveness and potential need for corrective actions.

What are the historical spending patterns for managed logistics services related to pharmaceuticals and medical supplies within the GSA or relevant agencies?

Historical spending patterns for similar services would typically be found by analyzing past contract awards within the GSA's Federal Acquisition Service (FAS) or other agencies that procure these types of logistics support. This would involve searching contract databases for keywords related to 'medical supply chain management,' 'pharmaceutical logistics,' 'medical equipment warehousing,' and similar terms, potentially filtering by NAICS code 493120 or related codes. Understanding historical spending levels, average contract values, and the number of competitors over time can provide context for the current $74.8 million award, indicating whether this represents an increase, decrease, or stable level of investment in these critical services.

Industry Classification

NAICS: Transportation and Warehousing › Warehousing and Storage › Refrigerated 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: 47QFCA19R0015

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 10635 MARINA DR, OLIVE BRANCH, MS, 38654

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $116,494,998

Exercised Options: $86,322,110

Current Obligation: $74,781,911

Actual Outlays: $45,317,194

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline