GSA Awards $75.5M Contract for Pharmaceutical & Medical Supply Management to Life Science Logistics

Contract Overview

Contract Amount: $75,495,934 ($75.5M)

Contractor: Life Science Logistics LLC

Awarding Agency: General Services Administration

Start Date: 2022-11-01

End Date: 2027-10-31

Contract Duration: 1,825 days

Daily Burn Rate: $41.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

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

Place of Performance

Location: ATLANTA, FULTON County, GEORGIA, 30349

State: Georgia Government Spending

Plain-Language Summary

General Services Administration obligated $75.5 million to LIFE SCIENCE LOGISTICS LLC for work described as: MANAGED SERVICES SUPPORT FOR GOVERNMENT-OWNED PHARMACEUTICALS, MEDICAL SUPPLIES, AND MEDICAL EQUIPMENT (SITE E) Key points: 1. Contract value of $75.5M over 5 years. 2. Life Science Logistics LLC is the sole awardee. 3. Potential risks include reliance on a single vendor for critical supplies. 4. The contract falls under the Warehousing and Storage sector.

Value Assessment

Rating: good

The contract value of $75.5M over five years suggests a significant but potentially reasonable price for comprehensive logistics services. Benchmarking against similar large-scale medical supply chain management contracts would provide a clearer picture of its cost-effectiveness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, indicating a competitive bidding process. This method is expected to drive price discovery and ensure fair market value for the services provided.

Taxpayer Impact: The competitive award process aims to secure efficient and cost-effective logistics for essential medical supplies, ultimately benefiting taxpayers by optimizing spending on critical government needs.

Public Impact

Ensures continuity of essential medical supplies and equipment for government facilities. Supports the operational readiness of government healthcare services. Potential for improved efficiency in the medical supply chain.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Single awardee for critical logistics.
Potential for supply chain disruptions if vendor faces issues.

Positive Signals

Full and open competition.
Long-term contract provides stability.
Firm fixed price contract limits cost overruns.

Sector Analysis

This contract is within the Warehousing and Storage sector, specifically focusing on refrigerated logistics for pharmaceuticals and medical supplies. Spending in this area is critical for maintaining public health infrastructure and ensuring the availability of essential medical goods.

Small Business Impact

The data indicates that small businesses were not directly awarded this contract, as it was awarded to Life Science Logistics LLC. Further analysis would be needed to determine if small businesses are involved as subcontractors.

Oversight & Accountability

The General Services Administration (GSA) is responsible for overseeing this contract. Standard GSA oversight mechanisms, including performance monitoring and contract compliance reviews, should be in place to ensure accountability and effective service delivery.

Related Government Programs

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

Risk Flags

Single point of failure risk.
Dependence on a single vendor for critical supplies.
Potential for price increases if market conditions change significantly.
Ensuring compliance with strict medical storage and handling regulations.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $75.5 million to LIFE SCIENCE LOGISTICS LLC. MANAGED SERVICES SUPPORT FOR GOVERNMENT-OWNED PHARMACEUTICALS, MEDICAL SUPPLIES, AND MEDICAL EQUIPMENT (SITE E)

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 $75.5 million.

What is the period of performance?

Start: 2022-11-01. End: 2027-10-31.

What is the specific scope of 'Site E' and how critical is its function to overall government operations?

Site E likely refers to a specific operational location or a designated set of facilities managed by the government that require these specialized logistics services. Understanding its criticality involves assessing the types of pharmaceuticals, medical supplies, and equipment stored and distributed from this site, and the impact on government functions (e.g., military readiness, public health initiatives, disaster response) if these services were interrupted.

What are the contingency plans in place should Life Science Logistics LLC experience operational failures or be unable to fulfill its contractual obligations?

Given the critical nature of medical supplies, robust contingency plans are essential. These should include pre-identified alternative logistics providers, emergency procurement procedures, and clear communication protocols with the government. The contract's terms likely outline remedies for non-performance, but proactive measures to ensure continuity of service are paramount for taxpayer protection and public health.

How does the firm fixed price structure account for potential fluctuations in storage and transportation costs, particularly for refrigerated goods?

A firm fixed price contract generally places the risk of cost fluctuations on the contractor. For refrigerated goods, this means Life Science Logistics LLC must absorb any increases in energy, fuel, or specialized equipment maintenance costs. The initial pricing would have factored in anticipated market conditions, but the contractor assumes the burden if actual costs exceed projections, which can be a benefit for the government if managed efficiently.

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: 47QFCA22R0027

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Life Science Logistics, LLC

Address: 3100 OLYMPUS BLVD, COPPELL, TX, 75019

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: $172,127,958

Exercised Options: $96,730,806

Current Obligation: $75,495,934

Actual Outlays: $52,008,874

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline