GSA awards $47.5M for pharmaceutical logistics, with 5 bidders and a 5-year term

Contract Overview

Contract Amount: $47,524,538 ($47.5M)

Contractor: Life Science Logistics, LLC

Awarding Agency: General Services Administration

Start Date: 2010-06-04

End Date: 2020-12-03

Contract Duration: 3,835 days

Daily Burn Rate: $12.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PHARMACEUTICAL MANAGED SERVICES

Place of Performance

Location: ATLANTA, DEKALB County, GEORGIA, 30333

State: Georgia Government Spending

Plain-Language Summary

General Services Administration obligated $47.5 million to LIFE SCIENCE LOGISTICS, LLC for work described as: PHARMACEUTICAL MANAGED SERVICES Key points: 1. Contract value appears reasonable given the 5-year duration and scope of pharmaceutical logistics services. 2. Full and open competition suggests a competitive environment, potentially leading to better pricing. 3. The contract's long duration may present risks if market conditions or needs change significantly. 4. Performance context is limited without specific metrics on delivery times or inventory accuracy. 5. This contract falls within the broader warehousing and storage sector, supporting federal supply chains.

Value Assessment

Rating: good

The contract value of approximately $47.5 million over five years averages to about $9.5 million annually. This figure seems within a reasonable range for comprehensive pharmaceutical managed services, considering the specialized handling, storage, and distribution requirements. Benchmarking against similar large-scale logistics contracts would provide a more precise value-for-money assessment, but the scale suggests a significant operational footprint.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that while the competition was broad, specific sources may have been excluded for defined reasons. With five bidders, the competition level suggests a healthy market interest. This level of competition generally supports price discovery and encourages offerors to submit competitive proposals.

Taxpayer Impact: A competitive award process helps ensure that taxpayer dollars are used efficiently by driving down costs through market forces.

Public Impact

Federal agencies requiring pharmaceutical storage and distribution benefit from reliable and compliant services. The contract ensures the availability of essential pharmaceuticals for government operations and potentially for beneficiaries. Services are likely concentrated in Georgia, impacting the regional logistics workforce and infrastructure. The contract supports the broader federal supply chain for medical and pharmaceutical goods.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price creep over the 5-year term if not managed closely.
Dependence on a single contractor for critical pharmaceutical logistics could pose supply chain risks.
Scope definition clarity is crucial to avoid disputes over service inclusions/exclusions.

Positive Signals

Full and open competition indicates a robust market and potential for competitive pricing.
A 5-year contract term provides stability for both the government and the contractor.
The award to a specialized logistics provider suggests expertise in handling sensitive materials.

Sector Analysis

This contract operates within the broader logistics and warehousing sector, specifically focusing on the specialized needs of pharmaceutical storage and distribution. The market for pharmaceutical logistics is significant, driven by healthcare demand and regulatory compliance. This contract represents a portion of federal spending aimed at ensuring the efficient and secure management of pharmaceutical supplies, complementing other government healthcare and supply chain initiatives.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, the primary contractor is likely a larger entity. There is no explicit information on subcontracting plans for small businesses within this data, but large prime contracts often include provisions for small business participation to meet federal goals.

Oversight & Accountability

Oversight would typically be managed by the General Services Administration (GSA) Federal Acquisition Service, which awarded the contract. Accountability measures would be defined in the contract terms, including performance standards and reporting requirements. Transparency is facilitated through contract award databases, though detailed performance data may not always be publicly accessible.

Related Government Programs

Federal Supply Schedule (FSS) contracts for logistics services
Department of Defense medical supply chain management
Veterans Affairs pharmaceutical distribution
General Warehousing and Storage services

Risk Flags

Long contract duration may not adapt to evolving market conditions.
Potential for vendor lock-in if competition is limited in future procurements.
Dependence on a single provider for critical supply chain functions.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $47.5 million to LIFE SCIENCE LOGISTICS, LLC. PHARMACEUTICAL MANAGED SERVICES

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 $47.5 million.

What is the period of performance?

Start: 2010-06-04. End: 2020-12-03.

What is the historical spending trend for pharmaceutical managed services by the GSA?

Historical spending data for pharmaceutical managed services by the GSA would require a deeper dive into contract databases beyond this single award. However, the award of a $47.5 million contract over five years suggests a consistent and significant need for these services. Trends in federal healthcare spending, pharmaceutical procurement policies, and the overall demand for managed logistics solutions would influence year-over-year spending patterns. Analyzing prior contracts, including their values and durations, would reveal whether this award represents an increase, decrease, or stable level of investment in pharmaceutical logistics.

How does the per-unit cost of this contract compare to industry benchmarks for pharmaceutical logistics?

Determining the precise per-unit cost for this contract is challenging without knowing the specific units of service (e.g., per-pallet stored, per-order fulfilled, per-mile delivered). The contract is a Definitive Contract with a Firm Fixed Price, suggesting that pricing was established upfront. To benchmark, one would need to identify comparable contracts or industry reports that detail pricing structures for similar pharmaceutical logistics services, factoring in elements like temperature control, security, and regulatory compliance. Given the $47.5M value over 5 years, the average annual cost is around $9.5M, which provides a high-level figure but not a granular per-unit comparison.

What are the key performance indicators (KPIs) used to evaluate the contractor's performance?

While specific KPIs are not detailed in the provided data, typical performance indicators for pharmaceutical logistics contracts include on-time delivery rates, order accuracy, inventory management accuracy (e.g., cycle count variance), temperature excursion monitoring, compliance with regulations (e.g., FDA, DEA), and response times to issues. The contract likely specifies acceptable performance thresholds for these and other relevant metrics. Failure to meet these KPIs could result in penalties or corrective actions as outlined in the contract terms.

What is the track record of LIFE SCIENCE LOGISTICS, LLC in performing federal contracts?

Information on LIFE SCIENCE LOGISTICS, LLC's track record with federal contracts is not provided in the summary data. A comprehensive assessment would involve reviewing their past performance ratings on federal contracts, any past performance issues or disputes, and their experience with similar scope and scale of work. Databases like the Federal Procurement Data System (FPDS) or the Contractor Performance Assessment Reporting System (CPARS) would be essential resources to evaluate their history and reliability as a federal contractor.

What are the potential risks associated with a 5-year contract term for pharmaceutical logistics?

A 5-year term for pharmaceutical logistics presents several potential risks. Market dynamics, such as changes in pharmaceutical manufacturing, distribution technologies, or regulatory requirements, could evolve, potentially making the contracted services less optimal or more expensive than alternatives. The contractor's financial stability or operational capacity could change over such a long period. Furthermore, if the government's needs shift significantly, the fixed-price nature of the contract might not easily accommodate those changes without costly modifications. Ensuring flexibility and regular performance reviews are crucial mitigation strategies.

Industry Classification

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

Product/Service Code: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2600 REGENT BLVD, DALLAS, TX, 75261

Business Categories: Category Business, Limited Liability Corporation, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $75,952,500

Exercised Options: $75,952,500

Current Obligation: $47,524,538

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: SERVICES PURSUANT TO FAR 12.102(G)

Cost or Pricing Data: NO

Timeline