GSA awards $97.4M for managed logistics services, with Life Science Logistics LLC as the prime contractor

Contract Overview

Contract Amount: $97,441,162 ($97.4M)

Contractor: Life Science Logistics LLC

Awarding Agency: General Services Administration

Start Date: 2021-03-18

End Date: 2026-03-17

Contract Duration: 1,825 days

Daily Burn Rate: $53.4K/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 PHARMACEUTICAL, MEDICAL SUPPLIES, AND MEDICAL EQUIPMENT (SITE K)

Place of Performance

Location: EDGEWOOD, PIERCE County, WASHINGTON, 98372

State: Washington Government Spending

Plain-Language Summary

General Services Administration obligated $97.4 million to LIFE SCIENCE LOGISTICS LLC for work described as: MANAGED SERVICES SUPPORT FOR GOVERNMENT-OWNED PHARMACEUTICAL, MEDICAL SUPPLIES, AND MEDICAL EQUIPMENT (SITE K) Key points: 1. Contract value of $97.4M over a 5-year period suggests significant demand for specialized logistics. 2. The contract is a firm-fixed-price definitive contract, indicating predictable costs for the government. 3. Life Science Logistics LLC, the sole awardee, has a history of managing complex supply chains. 4. The contract falls under NAICS code 493110 (General Warehousing and Storage), highlighting its core function. 5. Awarded by the General Services Administration (GSA), this contract supports critical pharmaceutical and medical equipment needs. 6. The duration of 1825 days (5 years) points to a long-term strategic partnership for supply chain management.

Value Assessment

Rating: good

The contract value of $97.4M over five years for managed logistics services appears reasonable given the scope of supporting pharmaceutical, medical supplies, and equipment. Benchmarking against similar large-scale federal logistics contracts would provide a more precise value-for-money assessment. The firm-fixed-price structure helps control costs, but detailed cost breakdowns are not publicly available to fully assess pricing efficiency. The absence of specific performance metrics in the provided data makes a definitive value assessment challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that multiple qualified vendors had the opportunity to bid. The fact that Life Science Logistics LLC was the sole awardee indicates they were the most competitive offeror based on the evaluation criteria. The level of competition is positive for price discovery, as it likely drove down initial bids. However, without knowing the number of proposals received, it's difficult to gauge the intensity of the competition.

Taxpayer Impact: Full and open competition generally benefits taxpayers by ensuring the government receives the best possible value through a wide range of offers and potentially lower prices due to market pressure.

Public Impact

Federal agencies requiring pharmaceutical, medical supplies, and equipment storage and management benefit from reliable logistics. The contract ensures the efficient flow of critical medical items, supporting healthcare readiness and operations. Geographic impact is likely nationwide, given the nature of federal supply chain management. The contract supports jobs within the logistics and supply chain management sector, particularly at Life Science Logistics LLC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in due to the long contract duration and specialized nature of services.
Reliance on a single contractor for critical medical supply chain management could pose a risk if performance falters.
Limited public data on performance metrics makes it difficult to assess ongoing value and efficiency.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Awarded through full and open competition, suggesting a competitive bidding process.
Long-term contract (5 years) indicates a stable and potentially efficient partnership for essential services.

Sector Analysis

This contract operates within the broader logistics and supply chain management sector, a critical component of the federal government's operational infrastructure. The market for federal logistics services is substantial, encompassing warehousing, transportation, and specialized handling of sensitive materials like pharmaceuticals and medical equipment. Comparable spending benchmarks would involve analyzing other large GSA or Department of Defense contracts for similar managed logistics services, which often run into tens or hundreds of millions of dollars.

Small Business Impact

The provided data indicates that small business set-aside was not utilized for this contract (sb: false). There is no explicit information regarding subcontracting plans for small businesses. Without this detail, it's difficult to assess the direct impact on the small business ecosystem. However, large prime contractors are often encouraged or required to have small business subcontracting goals on their federal contracts, which could indirectly benefit small businesses.

Oversight & Accountability

Oversight for this contract is likely managed by the General Services Administration (GSA) contracting officers and program managers. Accountability measures would be embedded within the contract's terms and conditions, including performance standards and reporting requirements. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

Federal Supply Schedule (FSS) contracts
Department of Defense Logistics and Supply Chain Management
Managed Logistics Services
Pharmaceutical and Medical Supply Chain

Risk Flags

Sole awardee in a full and open competition could indicate limited market interest or highly specialized requirements.
Long-term contract duration may limit flexibility and opportunities for market innovation.
Lack of specific performance metrics in summary data hinders real-time value assessment.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $97.4 million to LIFE SCIENCE LOGISTICS LLC. MANAGED SERVICES SUPPORT FOR GOVERNMENT-OWNED PHARMACEUTICAL, MEDICAL SUPPLIES, AND MEDICAL EQUIPMENT (SITE K)

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 $97.4 million.

What is the period of performance?

Start: 2021-03-18. End: 2026-03-17.

What is the historical spending pattern for managed logistics services by the GSA under similar contracts?

Analyzing historical spending patterns for GSA's managed logistics services requires access to detailed contract databases beyond the provided summary. Generally, federal agencies like GSA award numerous contracts for logistics support, ranging from individual facility warehousing to comprehensive supply chain management. Spending can fluctuate based on agency needs, national emergencies (like pandemics), and shifts in procurement strategies. For instance, during periods of increased healthcare demand or strategic material stockpiling, spending on medical logistics contracts would likely rise. Without specific historical data for this particular contract vehicle or comparable ones, it's difficult to provide precise figures, but GSA's overall logistics spending is in the billions annually across various categories.

How does the per-unit cost of Life Science Logistics LLC's services compare to industry benchmarks for similar federal contracts?

Determining the per-unit cost benchmark for Life Science Logistics LLC's services is challenging without specific details on the units of service provided (e.g., cost per pallet stored, cost per item shipped, cost per square foot of warehouse space). Federal contracts often have complex pricing structures that include fixed fees, variable costs, and performance-based incentives. To compare against industry benchmarks, one would need to access detailed pricing data from this contract and compare it with publicly available data from similar contracts awarded to other logistics providers for federal agencies. Factors like geographic location, security requirements, and the type of goods handled significantly influence per-unit costs. Generally, firm-fixed-price contracts aim for competitive pricing, but without granular data, a precise benchmark comparison is not feasible.

What are the key performance indicators (KPIs) used to evaluate Life Science Logistics LLC's performance under this contract?

The provided data does not specify the key performance indicators (KPIs) for this contract. However, typical KPIs for managed logistics services in the federal sector often include metrics such as on-time delivery rates, order accuracy, inventory accuracy, response times to requisitions, damage rates during transit, and compliance with storage and handling protocols (especially critical for pharmaceuticals and medical equipment). The contract's terms and conditions would detail these KPIs, and performance would likely be monitored through regular reporting by the contractor and oversight by the GSA. Failure to meet these KPIs could result in penalties or impact future contract awards.

What is the track record of Life Science Logistics LLC in managing federal contracts of similar size and scope?

Life Science Logistics LLC has a track record of managing federal contracts, including those involving logistics and supply chain support for government entities. While the specific details of their past performance on contracts of this exact size ($97.4M) and scope (pharmaceutical, medical supplies, and equipment) are not fully detailed in the provided summary, the company's specialization suggests experience in this domain. Federal procurement databases would contain more granular information on their past awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any issues encountered. Their ability to win this significant contract indicates a positive assessment of their past performance and capabilities by the GSA.

What are the potential risks associated with relying on a single contractor for these critical medical logistics services?

Relying on a single contractor, even one with a good track record, introduces several risks. These include potential disruptions to service delivery if the contractor experiences financial difficulties, labor strikes, or operational failures. There's also the risk of reduced price competition in future procurements if the incumbent contractor becomes entrenched. Furthermore, a sole reliance could limit the government's ability to adopt innovative solutions offered by other market players. For critical medical supplies, any lapse in logistics could have significant public health implications, underscoring the importance of robust contingency planning and continuous performance monitoring by the GSA.

Industry Classification

NAICS: Transportation and Warehousing › Warehousing and Storage › General 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: 47QFCA21R0006

Offers Received: 1

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, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $155,639,827

Exercised Options: $123,581,023

Current Obligation: $97,441,162

Actual Outlays: $57,492,358

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline