Metro Logics Inc. awarded $31.9M for managed services of medical supplies and equipment

Contract Overview

Contract Amount: $31,929,740 ($31.9M)

Contractor: Metro Logics Inc

Awarding Agency: General Services Administration

Start Date: 2021-09-30

End Date: 2026-09-29

Contract Duration: 1,825 days

Daily Burn Rate: $17.5K/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 GOVERNMENTOWNED PHARMACEUTICAL MEDICAL SUPPLIES AND MEDICAL EQUIPMENT SITE N

Place of Performance

Location: ATLANTA, DEKALB County, GEORGIA, 30333

State: Georgia Government Spending

Plain-Language Summary

General Services Administration obligated $31.9 million to METRO LOGICS INC for work described as: MANAGED SERVICES SUPPORT FOR GOVERNMENTOWNED PHARMACEUTICAL MEDICAL SUPPLIES AND MEDICAL EQUIPMENT SITE N Key points: 1. Contract value appears reasonable for a multi-year managed services agreement. 2. Full and open competition suggests a competitive bidding process. 3. Contract duration of five years presents potential for long-term vendor lock-in. 4. Fixed-price contract type shifts risk to the contractor. 5. The contract is categorized under refrigerated warehousing and storage. 6. No small business set-aside was utilized.

Value Assessment

Rating: good

The contract value of $31.9 million over five years for managed services of pharmaceutical medical supplies and equipment appears to be within a reasonable range for this type of support. Benchmarking against similar contracts for warehousing and logistics of sensitive medical goods would provide a more precise assessment of value for money. The firm fixed-price structure is generally favorable for the government, as it caps costs and incentivizes contractor efficiency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. With two bids received, the level of competition was moderate. While more bidders could potentially drive prices lower, two bidders suggest that the market has at least some interest and capability in providing these services.

Taxpayer Impact: A competitive process, even with two bidders, is generally beneficial for taxpayers as it encourages price negotiation and can lead to more cost-effective solutions compared to sole-source awards.

Public Impact

The General Services Administration (GSA) benefits from efficient management of government-owned medical supplies and equipment. The contract ensures the proper storage and handling of critical medical assets. The geographic impact is primarily within Georgia, where the services are likely performed. Workforce implications may include jobs in logistics, warehousing, and administrative support within the contractor's organization.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price increases in future contract renewals if competition diminishes.
Reliance on a single contractor for critical medical supply chain functions could pose a risk if performance issues arise.
The five-year duration may limit flexibility to adopt newer, more efficient technologies if they emerge during the contract period.

Positive Signals

Firm fixed-price contract protects the government from cost overruns.
Full and open competition suggests a deliberate effort to secure competitive pricing.
The contractor, Metro Logics Inc., is responsible for managing complex logistics, freeing up government resources.

Sector Analysis

The contract falls within the broader logistics and supply chain management sector, specifically focusing on refrigerated warehousing and storage for medical supplies. This is a critical niche within the federal supply chain, particularly for agencies managing pharmaceuticals and sensitive medical equipment. The market for such specialized services is competitive, with established players offering a range of capabilities. Federal spending in this area is driven by the need for secure, compliant, and efficient storage solutions for government assets.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. This means that opportunities for small businesses to participate in this specific contract are limited unless they are prime contractors themselves or are subcontracted by Metro Logics Inc. without a formal set-aside requirement.

Oversight & Accountability

Oversight for this contract would primarily fall under the General Services Administration's Federal Acquisition Service. Mechanisms likely include performance reviews, contract management, and adherence to service level agreements. Transparency is generally maintained through federal contract databases. The specific Inspector General jurisdiction would depend on the agency ultimately utilizing the managed services, but GSA's OIG would have oversight over the contracting process itself.

Related Government Programs

Federal Supply Schedule (FSS) contracts for logistics and warehousing
Department of Defense medical supply chain management
Veterans Affairs medical logistics services

Risk Flags

Potential for supply chain disruption if contractor fails to perform.
Risk of data security breaches related to inventory management.
Long-term contract duration may limit adoption of future technological advancements.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $31.9 million to METRO LOGICS INC. MANAGED SERVICES SUPPORT FOR GOVERNMENTOWNED PHARMACEUTICAL MEDICAL SUPPLIES AND MEDICAL EQUIPMENT SITE N

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 $31.9 million.

What is the period of performance?

Start: 2021-09-30. End: 2026-09-29.

What is Metro Logics Inc.'s track record with federal contracts, particularly those involving medical supplies or warehousing?

A review of federal procurement data indicates that Metro Logics Inc. has a history of receiving federal contracts. While specific details on their performance for medical supply management would require deeper analysis of past contract performance reports (e.g., CPARS), their ability to secure this $31.9 million contract suggests a level of capability and reliability recognized by the General Services Administration. Further investigation into their contract history, including any past issues or commendations, would provide a more comprehensive understanding of their suitability for this role. It is important to note that contract awards do not always equate to flawless performance, and a thorough review of past performance evaluations is crucial for a complete assessment.

How does the awarded price of $31.9 million compare to market rates for similar managed services in refrigerated warehousing for medical supplies?

The awarded price of $31.9 million over five years equates to an average annual cost of approximately $6.38 million. To benchmark this effectively, one would need to compare it against contracts for similar services (managed warehousing, cold chain logistics, medical supplies) awarded by other federal agencies or even state and local governments. Factors such as the volume of supplies, specific temperature control requirements, security measures, and geographic location significantly influence pricing. Without access to detailed service requirements and market analysis data used during the procurement, a precise comparison is challenging. However, the fact that it was awarded under full and open competition with two bids suggests the price was deemed competitive within the market context considered by GSA.

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

Key risks include potential performance failures by the contractor (Metro Logics Inc.) leading to disruptions in the medical supply chain, data security breaches related to sensitive inventory information, and the possibility of cost increases if contract modifications are needed. Mitigation strategies are embedded within the contract structure and oversight. The firm fixed-price nature shifts cost overrun risk to the contractor. Performance standards and service level agreements (SLAs) are likely defined, with penalties for non-compliance. GSA's contract management and oversight functions are designed to monitor performance and address issues proactively. Security protocols and data protection clauses would also be stipulated in the contract to safeguard sensitive information.

How effective is the current managed services model for government-owned medical supplies compared to previous approaches?

Assessing the effectiveness requires historical data on the performance of previous models, such as in-house management or different contracting approaches. If this contract represents a shift towards outsourcing or a new managed services provider, the effectiveness would be measured against metrics like inventory accuracy, delivery timeliness, spoilage rates, and overall cost savings. The GSA's decision to award this contract suggests a belief that a managed services approach, potentially with Metro Logics Inc., offers advantages in efficiency, expertise, or cost-effectiveness compared to prior methods. A formal program evaluation post-award would be necessary to definitively determine its effectiveness.

What are the historical spending patterns for managed services related to medical supplies and equipment by the GSA or similar agencies?

Historical spending patterns for managed services in this area can vary significantly based on agency needs, policy shifts towards outsourcing, and the evolution of the healthcare supply chain. GSA, as a central procurement agency, often consolidates requirements. Analyzing GSA's spending on logistics, warehousing, and supply chain management over the past 5-10 years, particularly for sensitive items like pharmaceuticals and medical equipment, would reveal trends. This contract's value ($31.9M over 5 years) should be viewed in the context of this broader spending landscape. Agencies often seek to optimize these services to reduce costs and improve readiness, leading to fluctuations in contract values and types awarded.

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: 47QFCA21R0043

Offers Received: 2

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: $65,237,743

Exercised Options: $34,029,740

Current Obligation: $31,929,740

Actual Outlays: $24,804,163

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline