GSA Awards $77.9M Contract for Pharmaceutical & Medical Supply Managed Services to Integrated Quality Solutions

Contract Overview

Contract Amount: $77,903,546 ($77.9M)

Contractor: Integrated Quality Solutions, LLC

Awarding Agency: General Services Administration

Start Date: 2023-10-30

End Date: 2028-10-29

Contract Duration: 1,826 days

Daily Burn Rate: $42.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: MANAGED SERVICES SUPPORT FOR GOVERNMENT OWNED PHARMACEUTICAL MEDICAL SUPPLIES AND MEDICAL EQUIPMENT SITE F

Place of Performance

Location: ATLANTA, DEKALB County, GEORGIA, 30341

State: Georgia Government Spending

Plain-Language Summary

General Services Administration obligated $77.9 million to INTEGRATED QUALITY SOLUTIONS, LLC for work described as: MANAGED SERVICES SUPPORT FOR GOVERNMENT OWNED PHARMACEUTICAL MEDICAL SUPPLIES AND MEDICAL EQUIPMENT SITE F Key points: 1. Contract value of $77.9M over 5 years for managed services. 2. Competition was full and open, indicating potential for competitive pricing. 3. Risk appears moderate given the nature of managed services for critical supplies. 4. Sector is primarily logistics and supply chain management within healthcare support.

Value Assessment

Rating: good

The contract value of $77.9M over five years for managed services appears reasonable when benchmarked against similar large-scale logistics and warehousing contracts. Specific per-unit cost data is not available for a precise comparison.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a robust price discovery process. This method typically leads to more competitive pricing as multiple vendors have the opportunity to bid.

Taxpayer Impact: Taxpayer funds are being used for essential managed services, with competition aiming to ensure value for money.

Public Impact

Ensures continuity of essential pharmaceutical and medical supplies. Supports government healthcare facilities and operations. Potential for improved efficiency in supply chain management.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if not managed effectively.
Dependence on a single vendor for critical supply chain functions.

Positive Signals

Full and open competition promotes market efficiency.
Long-term contract provides stability for essential services.

Sector Analysis

This contract falls within the broader logistics and supply chain management sector, specifically supporting healthcare operations. Benchmarks for similar managed services contracts in government can vary widely based on scope and duration.

Small Business Impact

The contract was awarded to Integrated Quality Solutions, LLC. Information regarding specific small business subcontracting goals or participation is not detailed in the provided data, and the awardee is not marked as a small business.

Oversight & Accountability

The General Services Administration (GSA) is responsible for this contract. Oversight will involve ensuring service level agreements are met and performance standards are maintained throughout the contract duration.

Related Government Programs

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

Risk Flags

Dependence on a single vendor for critical supplies.
Potential for cost overruns if scope creep occurs.
Ensuring consistent quality of service over a long contract term.
Cybersecurity risks associated with managed IT components (if applicable).

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $77.9 million to INTEGRATED QUALITY SOLUTIONS, LLC. MANAGED SERVICES SUPPORT FOR GOVERNMENT OWNED PHARMACEUTICAL MEDICAL SUPPLIES AND MEDICAL EQUIPMENT SITE F

Who is the contractor on this award?

The obligated recipient is INTEGRATED QUALITY SOLUTIONS, LLC.

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $77.9 million.

What is the period of performance?

Start: 2023-10-30. End: 2028-10-29.

What are the key performance indicators (KPIs) for this managed services contract, and how will they be monitored to ensure value for money?

Key performance indicators likely include on-time delivery rates, inventory accuracy, temperature control compliance for pharmaceuticals, and response times for emergency requests. GSA's Federal Acquisition Service will monitor these through regular reporting, site visits, and performance reviews to ensure Integrated Quality Solutions, LLC meets contractual obligations and provides efficient, cost-effective services.

What are the potential risks associated with relying on a single vendor for managed pharmaceutical and medical supply services, and what mitigation strategies are in place?

Risks include service disruptions due to vendor issues (financial, operational, or personnel), potential price increases upon renewal, and lack of flexibility. Mitigation strategies may involve robust contract clauses for performance failures, contingency planning for service continuity, regular market analysis to ensure continued competitiveness, and clear termination for convenience clauses.

How does this contract contribute to the overall effectiveness and resilience of the government's medical supply chain, particularly in emergency situations?

This contract aims to enhance effectiveness by centralizing and professionalizing the management of critical medical supplies. Its contribution to resilience lies in ensuring a stable, managed supply chain that can potentially adapt to fluctuating demands. The managed service provider is expected to maintain adequate inventory levels and efficient distribution networks, crucial for responding to both routine needs and emergency requirements.

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: 47QFCA22R0067

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 585 S GREER ST, MEMPHIS, TN, 38111

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Not Designated a Small Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $246,019,688

Exercised Options: $138,057,722

Current Obligation: $77,903,546

Actual Outlays: $51,587,859

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline