GSA Awards $73.3M Contract for Pharmaceutical Supply Chain Management to Life Science Logistics LLC

Contract Overview

Contract Amount: $73,285,667 ($73.3M)

Contractor: Life Science Logistics LLC

Awarding Agency: General Services Administration

Start Date: 2021-12-14

End Date: 2026-12-13

Contract Duration: 1,825 days

Daily Burn Rate: $40.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: MANAGED SERVICES SUPPORT FOR GOVERNMENTOWNED PHARMACEUTICAL MEDICAL SUPPLIES AND MEDICAL EQUIPMENT SITE L

Place of Performance

Location: ATLANTA, DEKALB County, GEORGIA, 30333

State: Georgia Government Spending

Plain-Language Summary

General Services Administration obligated $73.3 million to LIFE SCIENCE LOGISTICS LLC for work described as: MANAGED SERVICES SUPPORT FOR GOVERNMENTOWNED PHARMACEUTICAL MEDICAL SUPPLIES AND MEDICAL EQUIPMENT SITE L Key points: 1. Contract awarded to Life Science Logistics LLC for managing government-owned pharmaceutical supplies and equipment. 2. The contract utilizes a Firm Fixed Price (FFP) structure, providing cost certainty. 3. Competition was full and open, suggesting a competitive bidding process. 4. The contract duration is 5 years, indicating a long-term need for these services.

Value Assessment

Rating: good

The contract's firm fixed price structure is standard for logistics services. Benchmarking against similar contracts for refrigerated warehousing and storage would be necessary for a precise value assessment, but the price appears reasonable for a 5-year duration.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and ensures the government receives the best value.

Taxpayer Impact: The competitive nature of the award suggests taxpayers are likely benefiting from a fair market price for essential pharmaceutical supply chain management.

Public Impact

Ensures the availability of critical medical supplies and equipment for government operations. Supports the efficient distribution and storage of pharmaceuticals, potentially impacting healthcare services. The contract's success relies on Life Science Logistics LLC's ability to maintain supply chain integrity and compliance.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price increases upon contract renewal if competition diminishes.
Dependence on a single vendor for critical medical supply chain operations.

Positive Signals

Firm Fixed Price contract provides budget predictability.
Full and open competition suggests a competitive award process.
Long-term contract (5 years) allows for stable service provision.

Sector Analysis

The contract falls under logistics and warehousing, specifically for medical supplies. Spending in this sector is crucial for government readiness and healthcare operations, with benchmarks varying based on the scale and complexity of storage and distribution required.

Small Business Impact

The contract was awarded to Life Science Logistics LLC and there is no indication of small business participation or subcontracting requirements in the provided data. Further analysis would be needed to determine if small businesses were involved.

Oversight & Accountability

The General Services Administration (GSA) is responsible for overseeing this contract. Standard oversight mechanisms for contract performance, financial management, and compliance are expected to be in place.

Related Government Programs

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

Risk Flags

Contractor financial stability.
Supply chain disruptions (e.g., natural disasters, pandemics).
Compliance with pharmaceutical storage regulations.
Dependence on a single provider for critical services.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $73.3 million to LIFE SCIENCE LOGISTICS LLC. MANAGED SERVICES SUPPORT FOR GOVERNMENTOWNED PHARMACEUTICAL MEDICAL SUPPLIES AND MEDICAL EQUIPMENT SITE L

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 $73.3 million.

What is the period of performance?

Start: 2021-12-14. End: 2026-12-13.

What is the specific performance metric for Life Science Logistics LLC regarding delivery timeliness and inventory accuracy?

The provided data does not specify the exact performance metrics or Key Performance Indicators (KPIs) for Life Science Logistics LLC. Typically, such contracts would include detailed requirements for delivery timelines, inventory management accuracy, temperature control compliance for pharmaceuticals, and reporting frequency. These metrics are crucial for ensuring the integrity and efficiency of the government's medical supply chain.

What are the potential risks associated with the firm fixed price contract if unforeseen logistical challenges arise?

A firm fixed price contract places the risk of unforeseen logistical challenges primarily on the contractor, Life Science Logistics LLC. If costs escalate due to factors like fuel price spikes, labor shortages, or unexpected regulatory changes, the contractor may absorb these losses, potentially impacting their financial stability or willingness to compete on future contracts. However, it also protects the government from cost overruns.

How does this contract contribute to the overall effectiveness of the government's medical supply chain resilience?

This contract is vital for the effectiveness of the government's medical supply chain by ensuring professional management of pharmaceutical and medical equipment storage and distribution. It leverages specialized logistics expertise, which can enhance efficiency, reduce waste, and improve the readiness of medical assets. The 5-year duration suggests a commitment to maintaining a stable and reliable supply chain infrastructure.

Industry Classification

NAICS: Transportation and Warehousing › Warehousing and Storage › Refrigerated 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: 47QFCA21R0095

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Life Science Logistics, LLC

Address: 2600 REGENT BLVD, DFW AIRPORT, 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: $142,968,323

Exercised Options: $93,247,244

Current Obligation: $73,285,667

Actual Outlays: $54,025,984

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline