HHS awards $5.6M contract for logistics and property management services to Goodwill Industries of North Georgia

Contract Overview

Contract Amount: $5,614,349 ($5.6M)

Contractor: Goodwill Industries of North Georgia, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2025-07-01

End Date: 2028-02-29

Contract Duration: 973 days

Daily Burn Rate: $5.8K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: THE PURPOSE OF THIS REQUIREMENT IS TO PROVIDE VARIOUS SERVICES INCLUDING WAREHOUSE RECEIVING, DISTRIBUTION, REAL TIME PACKAGE TRACKING, TRACKING AND CONTROL OF ACCOUNTABLE PROPERTY, SHORT-TERM STORAGE, PICK- UP AND DELIVERY OF EXCESS PROPERTY, EXPEDI

Place of Performance

Location: ATLANTA, DEKALB County, GEORGIA, 30329

State: Georgia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $5.6 million to GOODWILL INDUSTRIES OF NORTH GEORGIA, INC. for work described as: THE PURPOSE OF THIS REQUIREMENT IS TO PROVIDE VARIOUS SERVICES INCLUDING WAREHOUSE RECEIVING, DISTRIBUTION, REAL TIME PACKAGE TRACKING, TRACKING AND CONTROL OF ACCOUNTABLE PROPERTY, SHORT-TERM STORAGE, PICK- UP AND DELIVERY OF EXCESS PROPERTY, EXPEDI Key points: 1. Contract focuses on essential logistics, including receiving, distribution, and storage of property. 2. Services encompass real-time package tracking and control of accountable property. 3. The contract duration spans over two years, indicating a need for sustained support. 4. This award represents a significant investment in maintaining operational efficiency for the CDC. 5. The fixed-price contract type aims to provide cost certainty for the government. 6. The geographic focus is Georgia, suggesting localized operational needs.

Value Assessment

Rating: good

The contract value of $5.6 million over approximately two years appears reasonable for comprehensive logistics and property management services. Benchmarking against similar federal contracts for warehouse operations and accountable property management suggests this pricing is within expected ranges. The firm-fixed-price structure helps control costs, and the contractor's mission alignment with community support may offer additional value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded as 'NOT AVAILABLE FOR COMPETITION,' indicating a sole-source procurement. While the specific justification for this approach is not detailed, sole-source awards can sometimes lead to higher prices due to a lack of competitive pressure. The absence of a competitive bidding process means that the government did not explore alternative providers or potentially lower-cost solutions that might have emerged from a broader solicitation.

Taxpayer Impact: Taxpayers may not be receiving the best possible price due to the lack of competition. Without a bidding process, it's harder to ensure that the selected contractor's price is the most cost-effective available in the market.

Public Impact

The Centers for Disease Control and Prevention (CDC) will benefit from enhanced operational efficiency and reliable management of its property and supplies. Services include critical functions like warehouse receiving, distribution, and real-time package tracking. The contract supports the tracking and control of accountable property, ensuring asset security. Geographic impact is primarily within Georgia, where the services will be performed. The contract supports the mission of a key federal health agency, indirectly benefiting public health initiatives.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing opportunities.
Lack of competition may obscure potential cost savings.
Performance details and specific service level agreements are not fully elaborated in the provided data.

Positive Signals

Contract awarded to an organization with a social mission (Goodwill Industries).
Firm-fixed-price contract provides cost predictability.
Longer contract duration suggests a stable, ongoing need for these services.

Sector Analysis

The Facilities Support Services sector, encompassing logistics, warehousing, and property management, is a critical component of government operations. This contract fits within the broader market for outsourced facility and operational support, which is substantial. Comparable spending benchmarks for similar services often vary widely based on scope, location, and service complexity. The North American Industry Classification System (NAICS) code 561210 for Facilities Support Services covers a range of activities, and this contract appears to focus on the logistics and management aspects within that classification.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false) and there is no specific mention of small business subcontracting requirements (sb: false). Therefore, this award does not appear to directly benefit the small business ecosystem through set-asides or mandated subcontracting. The primary contractor, Goodwill Industries of North Georgia, Inc., while a large organization, has a mission focused on employment and training for individuals facing barriers, which indirectly supports workforce development.

Oversight & Accountability

Oversight for this contract will likely be managed by the contracting officer and program officials within the Centers for Disease Control and Prevention (CDC). As a definitive contract, it is subject to standard federal procurement regulations and oversight. Transparency is facilitated through contract databases like FPDS. While specific Inspector General (IG) jurisdiction is not detailed, the HHS IG typically oversees contracts within the department, ensuring accountability and investigating potential fraud, waste, or abuse.

Related Government Programs

Federal Warehouse Operations Contracts
Government Property Management Services
Logistics and Distribution Support
CDC Supply Chain Management
HHS Facilities Maintenance and Support

Risk Flags

Sole-source award lacks competitive pricing.
Potential for higher costs due to lack of competition.
Limited transparency on the justification for sole-source award.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $5.6 million to GOODWILL INDUSTRIES OF NORTH GEORGIA, INC.. THE PURPOSE OF THIS REQUIREMENT IS TO PROVIDE VARIOUS SERVICES INCLUDING WAREHOUSE RECEIVING, DISTRIBUTION, REAL TIME PACKAGE TRACKING, TRACKING AND CONTROL OF ACCOUNTABLE PROPERTY, SHORT-TERM STORAGE, PICK- UP AND DELIVERY OF EXCESS PROPERTY, EXPEDI

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 $5.6 million.

What is the period of performance?

Start: 2025-07-01. End: 2028-02-29.

What is the specific justification for awarding this contract on a sole-source basis?

The provided data states the contract was awarded as 'NOT AVAILABLE FOR COMPETITION,' which signifies a sole-source procurement. The specific justification for this determination is not included in the data. Typically, sole-source awards are made when only one responsible source can satisfy the agency's needs, such as in cases of urgent and compelling requirements, unique capabilities, or when a previous contract was awarded under specific circumstances that limit competition for follow-on work. Without further documentation, the exact reason remains unclear, but it implies that the CDC determined that no other vendor could meet the requirement as effectively or efficiently as Goodwill Industries of North Georgia, Inc. This could be due to specialized knowledge, existing infrastructure, or specific program integration needs.

How does the $5.6 million contract value compare to similar federal logistics and property management contracts?

The $5.6 million contract value over approximately 2.6 years (from July 1, 2025, to February 29, 2028) translates to an average annual value of roughly $2.16 million. This figure is within a reasonable range for comprehensive facilities support services, including warehousing, distribution, and accountable property management, especially for a federal agency like the CDC. Contracts for similar services can range from hundreds of thousands to tens of millions of dollars annually, depending on the scale, complexity, geographic scope, and specific services required. Given the essential nature of these services for operational continuity, the value appears commensurate with the scope outlined.

What are the primary risks associated with this sole-source contract award?

The primary risk associated with this sole-source contract is the potential for a lack of price competition, which could result in the government paying a higher price than if the contract had been competed. Without multiple bids, there is less incentive for the contractor to offer the lowest possible price. Another risk could be vendor lock-in, where the agency becomes dependent on a single provider, potentially limiting flexibility in the future. Furthermore, if the justification for the sole-source award was not robust, there's a risk of perceived unfairness or missed opportunities to engage with other capable vendors. Ensuring strong performance management and clear deliverables becomes crucial to mitigate risks related to service quality and value.

What is the track record of Goodwill Industries of North Georgia, Inc. in performing similar federal contracts?

While the provided data confirms Goodwill Industries of North Georgia, Inc. as the awardee, it does not detail their specific track record with federal contracts. However, Goodwill organizations nationwide are known for providing a wide range of services, including logistics, warehousing, and facilities support, often through government contracts. Their mission-driven approach often aligns well with government objectives for community engagement and workforce development. To fully assess their track record, one would need to review their past performance evaluations on similar federal contracts, including any awards, past performance questionnaires, and any documented issues or successes in fulfilling government requirements.

How does this contract align with the Centers for Disease Control and Prevention's (CDC) mission and operational needs?

This contract directly supports the CDC's mission by ensuring the efficient and secure management of essential supplies, equipment, and property. Reliable logistics, warehousing, and real-time tracking are critical for maintaining the operational readiness of a public health agency that may need to respond rapidly to various health threats. Proper management of accountable property ensures that valuable assets are safeguarded and available when needed. By outsourcing these functions to a specialized provider like Goodwill Industries, the CDC can focus its internal resources on its core scientific and public health activities, thereby enhancing overall effectiveness and responsiveness.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services

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: 75D30125R00125

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2201 LAWRENCEVILLE HWY STE 300, 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: $16,531,411

Exercised Options: $5,614,349

Current Obligation: $5,614,349

Actual Outlays: $1,818,413

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline