HHS Awards $15.8M for Warehousing Services to Goodwill Industries of North Georgia

Contract Overview

Contract Amount: $15,798,514 ($15.8M)

Contractor: Goodwill Industries of North Georgia, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2020-09-08

End Date: 2025-06-30

Contract Duration: 1,756 days

Daily Burn Rate: $9.0K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: WAREHOUSE MANAGEMENT

Place of Performance

Location: ATLANTA, DEKALB County, GEORGIA, 30341

State: Georgia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $15.8 million to GOODWILL INDUSTRIES OF NORTH GEORGIA, INC. for work described as: WAREHOUSE MANAGEMENT Key points: 1. Total contract value is $15.8 million over approximately 5 years. 2. The contract was not available for competition, raising potential value concerns. 3. The primary risk lies in the lack of competitive bidding to ensure optimal pricing. 4. Spending is within the General Warehousing and Storage sector.

Value Assessment

Rating: questionable

The contract's value is difficult to assess without competitive benchmarks. The lack of competition suggests potential for overpayment compared to market rates.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was not available for competition, indicating a sole-source or limited competition scenario. This limits price discovery and potentially increases costs for taxpayers.

Taxpayer Impact: The absence of competition may lead to higher costs for taxpayers than if the contract were competitively bid.

Public Impact

Taxpayers may be paying more than necessary due to the lack of competition. The CDC relies on this contract for essential warehousing and storage operations. The long duration of the contract (nearly 5 years) could lock in potentially suboptimal pricing.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Potential for overpayment
Long contract duration

Positive Signals

Supports essential government operations
Contract awarded to a non-profit organization

Sector Analysis

The General Warehousing and Storage sector involves significant logistical operations. Benchmarks for similar contracts are difficult to ascertain without competitive data, but typically involve efficient inventory management and distribution.

Small Business Impact

This contract was awarded to Goodwill Industries, a non-profit organization, not a small business. There is no indication of small business subcontracting opportunities within the provided data.

Oversight & Accountability

The lack of competition warrants further oversight to ensure the CDC is receiving fair value for the warehousing services provided. Accountability for pricing and performance should be closely monitored.

Related Government Programs

General Warehousing and Storage
Department of Health and Human Services Contracting
Centers for Disease Control and Prevention Programs

Risk Flags

Lack of competitive bidding
Potential for inflated pricing
Limited transparency in award justification
Long-term commitment without demonstrated best value

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $15.8 million to GOODWILL INDUSTRIES OF NORTH GEORGIA, INC.. WAREHOUSE MANAGEMENT

Who is the contractor on this award?

The obligated recipient is GOODWILL INDUSTRIES OF NORTH GEORGIA, INC..

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Centers for Disease Control and Prevention).

What is the total obligated amount?

The obligated amount is $15.8 million.

What is the period of performance?

Start: 2020-09-08. End: 2025-06-30.

What is the justification for not competing this contract, and what steps are being taken to ensure fair pricing?

The justification for not competing this contract is not provided in the data. To ensure fair pricing, the agency should conduct regular market research and potentially re-evaluate the contract's necessity for competition upon renewal. Independent cost analysis could also provide assurance.

What are the specific risks associated with awarding a long-term contract without competition?

The primary risks include paying above-market rates due to the absence of competitive pressure, reduced incentive for the contractor to innovate or improve efficiency, and potential lock-in to a service provider that may not be the best value over time. This can lead to suboptimal resource allocation for the government.

How does this contract contribute to the CDC's mission effectiveness, and are there alternative solutions?

This contract supports the CDC's mission by ensuring the proper warehousing and storage of essential goods and materials. While the specific impact is unclear without more detail, the effectiveness hinges on reliable service delivery. Alternative solutions might involve consolidating warehousing needs with other agencies or exploring different contracting vehicles if competition becomes feasible.

Industry Classification

NAICS: Transportation and Warehousing › Warehousing and Storage › General Warehousing and Storage

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 75D301-20-R-67860

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2201 LAWRENCEVILLE HWY, DECATUR, GA, 30033

Business Categories: AbilityOne Program Participant, Category Business, Community Development Corporation, Corporate Entity Tax Exempt, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $15,798,514

Exercised Options: $15,798,514

Current Obligation: $15,798,514

Actual Outlays: $12,317,205

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline