GSA Awards $65.8M Contract for Pharmaceutical Managed Services to Life Science Logistics LLC

Contract Overview

Contract Amount: $65,820,462 ($65.8M)

Contractor: Life Science Logistics LLC

Awarding Agency: General Services Administration

Start Date: 2011-07-05

End Date: 2021-07-04

Contract Duration: 3,652 days

Daily Burn Rate: $18.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: PHARMACEUTICAL MANAGED SERVICES IN ATLANTA, GA AREA.

Place of Performance

Location: DALLAS, DALLAS County, TEXAS, 75261

State: Texas Government Spending

Plain-Language Summary

General Services Administration obligated $65.8 million to LIFE SCIENCE LOGISTICS LLC for work described as: PHARMACEUTICAL MANAGED SERVICES IN ATLANTA, GA AREA. Key points: 1. Contract awarded to a single vendor, Life Science Logistics LLC. 2. The contract spans nearly 10 years, indicating a long-term need. 3. The service falls under Refrigerated Warehousing and Storage (NAICS 493120). 4. The contract was awarded under 'Full and Open Competition After Exclusion of Sources', suggesting a specific justification for limiting initial bidders.

Value Assessment

Rating: fair

The contract value of $65.8 million over 10 years averages to approximately $6.58 million annually. Benchmarking against similar large-scale logistics and warehousing contracts is difficult without more specific service details, but the duration suggests a significant operational scale.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The award was made under 'Full and Open Competition After Exclusion of Sources'. This method implies that while the competition was intended to be open, specific criteria or circumstances led to the exclusion of certain potential sources, which could impact price discovery and potentially lead to higher costs.

Taxpayer Impact: The significant contract value over a decade represents a substantial taxpayer investment. The justification for excluding sources needs careful review to ensure fair pricing and optimal use of funds.

Public Impact

Ensures continued availability of essential pharmaceutical warehousing and logistics services. Supports the supply chain for critical medications and medical supplies. Potential impact on the cost of healthcare services if logistics costs are passed on. The long duration may limit opportunities for newer, potentially more cost-effective providers to enter the market.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition justification
Long contract duration
Lack of specific service details for benchmarking

Positive Signals

Addresses a critical need for pharmaceutical logistics
Established vendor with a long-term contract

Sector Analysis

The pharmaceutical logistics sector is critical for healthcare supply chains, requiring specialized handling and storage. Spending in this area is driven by demand for pharmaceuticals and medical supplies, with significant investment in secure, temperature-controlled warehousing.

Small Business Impact

The data indicates this contract was not awarded to small businesses, as 'sb' is false. The exclusion of sources in the competition method may also limit opportunities for small businesses to participate.

Oversight & Accountability

The General Services Administration (GSA) is responsible for overseeing this contract. Oversight should focus on ensuring Life Science Logistics LLC meets performance standards and that the pricing remains competitive throughout the contract's long duration, especially given the limited competition aspect.

Related Government Programs

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

Risk Flags

Limited competition raises concerns about price optimization.
Long contract duration may reduce flexibility and opportunities for innovation.
Lack of detailed service scope makes independent value assessment difficult.
Potential for price creep over the 10-year term without strong oversight.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $65.8 million to LIFE SCIENCE LOGISTICS LLC. PHARMACEUTICAL MANAGED SERVICES IN ATLANTA, GA AREA.

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 $65.8 million.

What is the period of performance?

Start: 2011-07-05. End: 2021-07-04.

What specific factors justified the exclusion of sources in this 'Full and Open Competition After Exclusion of Sources' award, and how did this impact the final price?

The justification for excluding sources is crucial for understanding the competitive landscape and potential price impacts. If specific technical capabilities or security requirements were the sole domain of Life Science Logistics LLC, it could explain the limited competition. However, without this information, it's difficult to assess if the government secured the best possible price or if alternative solutions were overlooked, potentially leading to suboptimal value for taxpayers.

How does the annual cost of this contract compare to industry benchmarks for similar pharmaceutical managed services, considering the specialized nature of refrigerated warehousing?

Benchmarking this contract's annual cost of approximately $6.58 million requires detailed comparison with industry data for pharmaceutical managed services, specifically refrigerated warehousing and logistics. Factors like volume, specific temperature controls, security, and geographic coverage are critical. Without granular data on these service components, a precise comparison is challenging, making it difficult to definitively assess if the pricing represents excellent value or is inflated due to limited competition or long-term commitments.

What mechanisms are in place to ensure the effectiveness and efficiency of Life Science Logistics LLC's services over the 10-year contract duration, particularly regarding potential technological adva

Given the 10-year duration, robust performance metrics, regular reviews, and potential price adjustment clauses tied to market conditions or technological advancements are essential. The contract should include clear Service Level Agreements (SLAs) and penalties for non-performance. The GSA's oversight should actively monitor these aspects to ensure continued effectiveness and prevent service degradation or cost inefficiencies as the market evolves.

Industry Classification

NAICS: Transportation and Warehousing › Warehousing and Storage › Refrigerated 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: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Life Science Logistics, LLC

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: $73,100,562

Exercised Options: $73,016,700

Current Obligation: $65,820,462

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: SERVICES PURSUANT TO FAR 12.102(G)

Cost or Pricing Data: NO

Timeline