GSA awards $17.1M contract for PPE site management to Metro Logics Inc., a sole-source deal

Contract Overview

Contract Amount: $17,156,824 ($17.2M)

Contractor: Metro Logics Inc

Awarding Agency: General Services Administration

Start Date: 2022-05-01

End Date: 2025-04-30

Contract Duration: 1,095 days

Daily Burn Rate: $15.7K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: MANAGED SERVICES FOR PPE SITE X

Place of Performance

Location: ATLANTA, DEKALB County, GEORGIA, 30333

State: Georgia Government Spending

Plain-Language Summary

General Services Administration obligated $17.2 million to METRO LOGICS INC for work described as: MANAGED SERVICES FOR PPE SITE X Key points: 1. Contract awarded on a sole-source basis, raising questions about potential cost savings through competition. 2. The contract duration of 1095 days suggests a long-term need for these managed services. 3. Fixed-price contract type may offer cost certainty but could limit flexibility if needs change. 4. The award to Metro Logics Inc. warrants a review of their past performance and pricing. 5. The absence of small business set-aside indicates potential missed opportunities for smaller firms. 6. The contract falls under warehousing and storage NAICS code, suggesting logistical support.

Value Assessment

Rating: questionable

Benchmarking the value of this $17.1 million contract is challenging without competitive data. As a sole-source award, there's no direct comparison to market rates derived from a competitive bidding process. The firm-fixed-price structure provides cost certainty for the government, but it's unclear if this represents the best possible value compared to what could have been achieved through open competition. Further analysis would require understanding the specific services provided and the contractor's cost structure.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when only one vendor can provide the required goods or services, or in specific emergency situations. The lack of competition means there was no opportunity for price discovery through bidding, potentially leading to higher costs for the government than if the contract had been competed.

Taxpayer Impact: Taxpayers may be paying a premium due to the absence of competitive pressure to drive down prices. Without a competitive process, it's difficult to ascertain if the awarded price reflects fair market value.

Public Impact

The primary beneficiaries are likely the entities requiring managed services for PPE Site X, ensuring operational continuity. The services delivered are expected to be comprehensive warehousing and storage solutions. The geographic impact is focused on the location of PPE Site X, likely within Georgia given the 'SN' code. Workforce implications could include direct employment by Metro Logics Inc. at the site and potential indirect employment in supporting industries.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits transparency and potential for cost savings.
Lack of competition may result in a higher price than a competed contract.
Absence of small business participation could limit economic opportunities for smaller firms.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Contract duration suggests a stable, long-term requirement being met.
Award to an established entity may indicate a known quantity for service delivery.

Sector Analysis

This contract falls within the General Warehousing and Storage sector (NAICS 493110), a critical component of supply chain management and logistics. The market for warehousing services is substantial, driven by e-commerce growth and the need for efficient inventory management across various industries. Government contracts in this sector often involve managing large facilities, ensuring security, and maintaining operational readiness, particularly for essential goods like PPE. Benchmarks for similar government warehousing contracts would typically consider facility size, services offered (e.g., inventory management, kitting, distribution), and geographic location.

Small Business Impact

The contract was not set aside for small businesses, and the 'sb' field is false, indicating no explicit small business participation was mandated. This sole-source award means there are no subcontracting opportunities for small businesses stemming directly from this contract's structure. The absence of a small business set-aside might represent a missed opportunity to foster growth and innovation within the small business ecosystem for warehousing and logistics services.

Oversight & Accountability

Oversight for this contract would primarily fall under the General Services Administration (GSA), specifically the Federal Acquisition Service. As a definitive contract, it is subject to standard federal procurement regulations and oversight mechanisms. Transparency is limited due to the sole-source nature. Accountability measures would be tied to the performance clauses within the firm-fixed-price contract, with potential for review by GSA contracting officers and possibly the Government Accountability Office (GAO) if disputes arise.

Related Government Programs

General Warehousing and Storage Services
Logistics and Supply Chain Management
Federal Supply Schedule Contracts
Emergency Preparedness and Response Contracts

Risk Flags

Sole-source award
Lack of competition
Potential for inflated pricing
Limited transparency

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $17.2 million to METRO LOGICS INC. MANAGED SERVICES FOR PPE SITE X

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 $17.2 million.

What is the period of performance?

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

What is the specific nature of the 'PPE Site X' and why is it managed under a sole-source contract?

The provided data does not specify the exact nature of 'PPE Site X' beyond it requiring managed services for warehousing and storage. The sole-source award suggests a unique circumstance, potentially related to specialized requirements, proprietary technology, or an urgent need where only Metro Logics Inc. could fulfill the contract. Without further information from the awarding agency (GSA), the precise justification for the sole-source designation remains unclear. This could be due to factors like existing infrastructure, specialized security clearances, or a critical operational dependency on the incumbent contractor. Understanding the specific context of 'PPE Site X' is crucial for evaluating the necessity of a sole-source award.

How does the $17.1 million cost compare to similar managed warehousing contracts awarded by the GSA or other agencies?

Direct comparison of the $17.1 million cost is difficult without knowing the scope, duration, and specific services included in this contract, especially given its sole-source nature. However, for context, GSA's Federal Supply Schedule (FSS) for Logistics Worldwide (LOGWORLD) offers various warehousing and distribution services. Pricing on FSS can vary significantly based on facility size, labor rates, and value-added services. A 1095-day contract at $17.1 million averages approximately $5.6 million per year. This annual figure would need to be benchmarked against similar-sized facilities and service levels managed by other government agencies or large commercial entities to assess its competitiveness. The lack of competition for this specific award means a true market-based price comparison is not feasible.

What is Metro Logics Inc.'s track record with government contracts, particularly with the GSA?

Information on Metro Logics Inc.'s specific track record with government contracts, especially with the GSA, is not detailed in the provided data. A comprehensive assessment would require reviewing their contract history, past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any documented issues or successes. Given this is a sole-source award, it's possible Metro Logics Inc. is an incumbent contractor for this specific site or service, implying a prior relationship and performance history that the GSA deemed satisfactory. Further due diligence would involve accessing public contract databases and agency performance records to understand their reliability, quality of service, and adherence to contract terms in previous engagements.

What are the potential risks associated with a sole-source contract of this magnitude and duration?

The primary risks associated with a sole-source contract of this magnitude ($17.1 million over 1095 days) include a lack of price competition, potentially leading to inflated costs for the government. There's also a reduced incentive for the contractor to innovate or improve efficiency beyond contractual requirements, as there's no competitive threat. Furthermore, reliance on a single provider can create vendor lock-in and increase vulnerability if the contractor experiences financial difficulties, operational failures, or decides to exit the market. Oversight becomes even more critical to ensure fair pricing and adequate performance when competition is absent.

How does the firm-fixed-price (FFP) contract type impact the government's financial exposure and the contractor's risk?

A Firm-Fixed-Price (FFP) contract type shifts most of the cost risk to the contractor. Metro Logics Inc. is obligated to complete the work for the agreed-upon price, regardless of their actual costs. This provides the government with budget certainty, as the total cost is known upfront. However, if the contractor can perform the work at a lower cost than anticipated, they will realize a higher profit margin. Conversely, if costs escalate unexpectedly for the contractor, their profit will decrease, or they could incur a loss. For the government, the main benefit is predictable spending, but the risk is potentially paying a premium if the FFP was set too high due to the lack of competition.

What is the significance of the NAICS code 493110 (General Warehousing and Storage) in the context of this contract?

The NAICS code 493110 signifies that the primary business activity covered by this contract is general warehousing and storage. This includes services such as operating facilities for storing goods, providing space and related administrative services. It encompasses activities like bulk storage, refrigerated storage, and storage for various types of goods. In the context of 'PPE Site X,' this suggests the contract is focused on the physical storage, inventory management, and potentially distribution of personal protective equipment or related materials. This classification helps in understanding the core function of the contract and allows for comparison with other government contracts within the same industry sector.

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: 47QFCA22R0001

Offers Received: 1

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: $17,156,824

Exercised Options: $17,156,824

Current Obligation: $17,156,824

Actual Outlays: $17,156,824

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline