GSA awards $73.5M contract for managed services of pharmaceuticals and medical equipment to Metro Logics Inc

Contract Overview

Contract Amount: $73,512,309 ($73.5M)

Contractor: Metro Logics Inc

Awarding Agency: General Services Administration

Start Date: 2023-05-15

End Date: 2028-05-14

Contract Duration: 1,826 days

Daily Burn Rate: $40.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

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

Place of Performance

Location: LAS VEGAS, CLARK County, NEVADA, 89115

State: Nevada Government Spending

Plain-Language Summary

General Services Administration obligated $73.5 million to METRO LOGICS INC for work described as: MANAGED SERVICES SUPPORT FOR GOVERNMENT-OWNED PHARMACEUTICALS, MEDICAL SUPPLIES, AND MEDICAL EQUIPMENT (SITE A) AWARD Key points: 1. Contract awarded for a 5-year term to manage government-owned pharmaceuticals, medical supplies, and equipment. 2. The contract utilizes a Firm Fixed Price (FFP) structure, providing cost certainty for the government. 3. Awarded through full and open competition, suggesting a competitive bidding process. 4. The scope includes refrigerated warehousing and storage, critical for maintaining the integrity of medical supplies. 5. The contractor, Metro Logics Inc., will be responsible for site A operations. 6. This contract falls under the Federal Acquisition Service of the GSA. 7. The North American Industry Classification System (NAICS) code is 493120, indicating a focus on warehousing and storage services.

Value Assessment

Rating: good

The contract value of $73.5 million over five years averages to $14.7 million annually. Benchmarking this against similar managed services contracts for medical supplies and pharmaceuticals is challenging without specific details on the volume and types of goods managed. However, the FFP structure suggests the government has negotiated a price deemed acceptable based on anticipated service levels. The scale of operations at 'Site A' will be a key factor in determining the true value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through 'full and open competition,' indicating that all responsible sources were permitted to submit bids. This typically involves a robust solicitation process designed to attract a wide range of qualified contractors. The number of bidders is not specified, but the open competition suggests a healthy level of interest and potential for competitive pricing.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to lower prices and better service quality through the selection of the most capable and cost-effective provider.

Public Impact

The primary beneficiaries are government agencies relying on a steady and well-managed supply of pharmaceuticals, medical supplies, and equipment. Services delivered include the management, warehousing, and storage of critical medical assets. The geographic impact is focused on 'Site A' in Nevada, serving as a key logistical hub. Workforce implications may include job creation within Metro Logics Inc. for logistics, warehousing, and administrative roles. Ensures the readiness and operational capability of medical services supported by these supplies.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for supply chain disruptions if contractor performance falters.
Reliance on a single contractor for critical medical logistics could pose a risk.
Ensuring compliance with stringent pharmaceutical and medical supply storage regulations.

Positive Signals

Firm Fixed Price contract provides budget predictability.
Full and open competition suggests a robust selection process.
Long-term contract (5 years) allows for stable service provision and potential for economies of scale.
Specialized NAICS code indicates focus on necessary warehousing and storage expertise.

Sector Analysis

This contract operates within the logistics and supply chain management sector, specifically focusing on specialized warehousing and storage for sensitive medical goods. The market for such services is driven by government and private sector demand for reliable inventory management, cold chain capabilities, and regulatory compliance. Comparable spending benchmarks would depend on the specific volume and nature of the medical supplies managed, but the $73.5 million award over five years indicates a significant operational scale within the federal logistics landscape.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Metro Logics Inc. is the prime contractor. There is no explicit information on subcontracting plans for small businesses within the provided data. The absence of a small business set-aside suggests that the competition was geared towards larger entities with the capacity to handle this scale of operation, and the impact on the small business ecosystem will depend on whether the prime contractor engages small businesses for subcontracting opportunities.

Oversight & Accountability

Oversight for this contract will likely be managed by the General Services Administration (GSA), specifically the Federal Acquisition Service. Accountability measures are embedded within the contract terms, including performance standards and reporting requirements inherent in a Firm Fixed Price agreement. Transparency is generally facilitated through GSA's contract award databases. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

GSA Federal Supply Schedule
Medical Materiel Management
Government Pharmaceutical Procurement
Logistics and Warehousing Services
Defense Logistics Agency (DLA) Medical Supply Chain

Risk Flags

Potential for supply chain disruption
Regulatory compliance risk
Contractor performance risk

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $73.5 million to METRO LOGICS INC. MANAGED SERVICES SUPPORT FOR GOVERNMENT-OWNED PHARMACEUTICALS, MEDICAL SUPPLIES, AND MEDICAL EQUIPMENT (SITE A) AWARD

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 $73.5 million.

What is the period of performance?

Start: 2023-05-15. End: 2028-05-14.

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 evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), any prior contract awards in similar domains, and their history of compliance with federal regulations. Without this specific performance history, it is difficult to definitively assess their capability and reliability for this critical managed services contract.

How does the annual cost of $14.7 million compare to industry benchmarks for similar managed logistics services for medical supplies?

The annual cost of approximately $14.7 million for managed services of government-owned pharmaceuticals, medical supplies, and equipment represents a significant investment. Benchmarking this figure accurately requires detailed knowledge of the volume, type, and specific handling requirements (e.g., cold chain, hazardous materials) of the inventory managed at 'Site A'. Industry benchmarks can vary widely based on these factors. However, given the specialized nature of medical logistics and the requirement for refrigerated warehousing (NAICS 493120), this annual figure suggests a substantial operational scale. Further analysis would involve comparing the cost per cubic foot stored, per item handled, or per unit managed against similar contracts or commercial providers, considering the government's specific needs and regulatory compliance overhead.

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

Key risks include potential supply chain disruptions if Metro Logics Inc. fails to perform adequately, leading to shortages of critical medical items. Another risk is the potential for non-compliance with stringent regulations governing the storage and handling of pharmaceuticals and medical equipment, which could compromise product integrity or lead to legal penalties. Furthermore, over-reliance on a single contractor for such a vital function presents a concentration risk. Mitigation strategies likely include robust performance monitoring by GSA, clearly defined service level agreements (SLAs) within the contract, contingency planning requirements for the contractor, and the potential for GSA to step in or re-compete the contract if performance issues arise. The Firm Fixed Price structure also mitigates budget overrun risks for the government.

What is the expected effectiveness of this contract in ensuring the availability and readiness of medical supplies?

The effectiveness of this contract hinges on Metro Logics Inc.'s ability to execute its managed services responsibilities efficiently and reliably. The 5-year duration and Firm Fixed Price structure are designed to promote stability and predictable costs, contributing to consistent availability. The focus on refrigerated warehousing and storage directly addresses the critical need to maintain the integrity and usability of sensitive medical supplies. GSA's oversight and the competitive award process aim to ensure that the selected contractor possesses the necessary expertise and infrastructure. Ultimately, effectiveness will be measured by the contractor's adherence to performance metrics, timely delivery, and the overall condition of the managed inventory, ensuring that government entities have access to necessary medical resources when required.

How does this contract's value and scope compare to historical spending patterns for similar GSA logistics or medical supply management contracts?

The $73.5 million award over five years ($14.7 million annually) for managed services of pharmaceuticals, medical supplies, and equipment is a substantial contract. To compare it to historical spending, one would need to analyze GSA's past awards for similar logistics and warehousing services, particularly those with specialized requirements like cold chain management for medical goods. Factors such as inflation, changes in government inventory needs, and market competition over time would influence such comparisons. Without access to historical GSA spending data specifically for comparable medical logistics contracts, it's difficult to definitively state whether this award represents an increase, decrease, or stable spending trend. However, the scale suggests a significant and ongoing requirement for these specialized 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: 47QFCA22R0066

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: $186,961,762

Exercised Options: $102,041,437

Current Obligation: $73,512,309

Actual Outlays: $49,113,175

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline