GSA Awards $21.5M for PPE Warehousing to Life Science Logistics LLC, Lacking Competition

Contract Overview

Contract Amount: $21,521,267 ($21.5M)

Contractor: Life Science Logistics LLC

Awarding Agency: General Services Administration

Start Date: 2022-05-01

End Date: 2025-04-30

Contract Duration: 1,095 days

Daily Burn Rate: $19.7K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: MANAGED SERVICES FOR PPE SITE W

Place of Performance

Location: ATLANTA, DEKALB County, GEORGIA, 30333

State: Georgia Government Spending

Plain-Language Summary

General Services Administration obligated $21.5 million to LIFE SCIENCE LOGISTICS LLC for work described as: MANAGED SERVICES FOR PPE SITE W Key points: 1. Significant contract value of $21.5 million for warehousing services. 2. Lack of competition raises concerns about price discovery and potential overspending. 3. The contract is for a duration of 1095 days (3 years). 4. Services fall under General Warehousing and Storage (NAICS 493110).

Value Assessment

Rating: questionable

The contract value of $21.5 million for 3 years of warehousing services needs comparison against similar GSA contracts for General Warehousing and Storage. Without competitive bidding, it's difficult to ascertain if the price is optimal.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source or limited competition award. This significantly limits price discovery and may lead to higher costs for taxpayers compared to a fully competed scenario.

Taxpayer Impact: The lack of competition could result in the government paying more than necessary for these essential warehousing services, impacting taxpayer funds.

Public Impact

Taxpayers may be overpaying for PPE warehousing due to the absence of competitive bidding. The long-term nature of the contract (3 years) locks in current pricing without market adjustments. Reliance on a single vendor for critical warehousing could pose supply chain risks if the vendor faces issues.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of Competition
Potential for Overpricing
Sole-Source Award

Positive Signals

Definitive Contract Awarded
Long-Term Service Agreement

Sector Analysis

The General Warehousing and Storage sector involves managing inventory and distribution. Spending in this sector can vary widely based on the type of goods stored and the complexity of logistics required. This contract's value is substantial for the specified duration.

Small Business Impact

The contract was awarded to Life Science Logistics LLC. There is no indication of small business participation or subcontracting in the provided data.

Oversight & Accountability

The lack of competition suggests potential oversight gaps in ensuring the most cost-effective solutions were pursued. Further review of the justification for not competing the award is warranted.

Related Government Programs

General Warehousing and Storage
General Services Administration Contracting
Federal Acquisition Service Programs

Risk Flags

Lack of Competition
Sole-Source Award
Potential for Overpricing
Limited Price Discovery
Vendor Lock-in

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $21.5 million to LIFE SCIENCE LOGISTICS LLC. MANAGED SERVICES FOR PPE SITE W

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 $21.5 million.

What is the period of performance?

Start: 2022-05-01. End: 2025-04-30.

What was the justification for not competing this $21.5 million warehousing contract, and how does its pricing compare to market rates for similar services?

The provided data indicates the contract was 'NOT COMPETED.' A thorough review would be needed to understand the specific justification (e.g., urgent need, unique capabilities). Without competitive bids, assessing the pricing against market benchmarks is challenging, but the absence of competition inherently raises concerns about achieving the best possible value for taxpayer dollars.

What are the potential risks associated with awarding a 3-year, $21.5 million warehousing contract on a sole-source basis?

The primary risk is financial: the government may be paying above-market rates due to the lack of competitive pressure. Operational risks include vendor dependency; if Life Science Logistics LLC experiences disruptions, the supply chain for PPE could be impacted. Furthermore, a sole-source award limits opportunities for other capable vendors to demonstrate their services and potentially offer better terms.

How effective is this contract likely to be in meeting the government's warehousing needs for PPE, given the procurement method?

Effectiveness in meeting the physical warehousing needs is plausible, as a definitive contract is in place. However, the effectiveness in terms of value for money is questionable due to the sole-source nature. While the service will likely be delivered, the government may not be achieving the most efficient or cost-effective outcome, potentially impacting the overall value derived from taxpayer investment.

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: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 47QFCA21R0106

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Life Science Logistics, LLC

Address: 2600 REGENT BLVD, DFW AIRPORT, 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: $21,521,267

Exercised Options: $21,521,267

Current Obligation: $21,521,267

Actual Outlays: $21,521,267

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline