GSA Awards $19.5M Contract for Smead Hanging BOX Bottom, LTR. to LC Industries Inc

Contract Overview

Contract Amount: $19,464 ($19.5K)

Contractor: LC Industries Inc

Awarding Agency: General Services Administration

Start Date: 2026-03-24

End Date: 2026-04-08

Contract Duration: 15 days

Daily Burn Rate: $1.3K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT

Sector: Other

Official Description: SMEAD HANGING BOX BOTTOM, LTR.

Place of Performance

Location: DURHAM, DURHAM County, NORTH CAROLINA, 27703

State: North Carolina Government Spending

Plain-Language Summary

General Services Administration obligated $19,463.65 to LC INDUSTRIES INC for work described as: SMEAD HANGING BOX BOTTOM, LTR. Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract is a BPA Call, indicating it's a call-off from a larger Blanket Purchase Agreement. 3. The duration of 15 days is very short, suggesting a specific, immediate need. 4. The contract type is Fixed Price with Economic Price Adjustment, which can protect against inflation but may increase final cost. 5. The product category is Office Supplies (except Paper) Manufacturing, a common government procurement area. 6. The awardee, LC INDUSTRIES INC, is a significant player in this product category.

Value Assessment

Rating: fair

The contract value of $19.5 million for a 15-day period appears high on a daily basis. Without specific details on the quantity and type of SMEAD HANGING BOX BOTTOM, LTR. being procured, it is difficult to benchmark the value effectively. However, the fixed price with economic price adjustment suggests potential for cost increases beyond the initial estimate. Further analysis would require understanding the unit costs and quantities involved.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which typically involves a broad solicitation to all responsible sources. This method is intended to maximize competition and ensure the government receives the best value. The number of bidders is not specified, but the 'full and open' designation implies a robust competitive environment was sought.

Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down prices through multiple bids, leading to more cost-effective procurement.

Public Impact

The primary beneficiaries are likely government agencies requiring SMEAD HANGING BOX BOTTOM, LTR. for their operations. The services delivered involve the manufacturing and supply of specific office equipment. The geographic impact is centered around North Carolina, where the contractor is located, and the delivery locations of the procured items. Workforce implications may include employment at LC INDUSTRIES INC and its supply chain.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

High daily cost suggests potential for overspending if not carefully managed.
Short contract duration may indicate rushed procurement or a lack of long-term planning.
Economic price adjustment clause introduces uncertainty in the final cost to taxpayers.

Positive Signals

Awarded through full and open competition, maximizing potential for competitive pricing.
Contractor is established in the office supplies manufacturing sector.
Clear product category (Office Supplies) simplifies performance monitoring.

Sector Analysis

The procurement falls within the broader office supplies and manufacturing sector. This sector is characterized by a wide range of products, from basic stationery to specialized equipment. Government spending in this area is consistent, supporting numerous manufacturers and distributors. Benchmarking would involve comparing the unit price and total value against similar procurements for hanging box bottoms or related office storage solutions.

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). Therefore, the primary contract is not directly aimed at small businesses. However, LC INDUSTRIES INC, as a large business, may engage small businesses as subcontractors, though this is not explicitly detailed in the provided data. The impact on the small business ecosystem would depend on LC INDUSTRIES INC's subcontracting practices.

Oversight & Accountability

Oversight for this contract would likely fall under the General Services Administration's (GSA) Federal Acquisition Service. Mechanisms would include contract performance monitoring, financial audits, and potentially Inspector General reviews if any irregularities are suspected. Transparency is generally maintained through contract award databases like FPDS, where this information is published.

Related Government Programs

Office Supplies Procurement
General Services Administration Contracts
Manufacturing Sector Contracts
Fixed Price Contracts with EPA

Risk Flags

High potential cost due to EPA clause
Short contract duration may indicate rushed procurement
Lack of specific quantity data hinders value analysis

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $19,463.65 to LC INDUSTRIES INC. SMEAD HANGING BOX BOTTOM, LTR.

Who is the contractor on this award?

The obligated recipient is LC INDUSTRIES INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $19,463.65.

What is the period of performance?

Start: 2026-03-24. End: 2026-04-08.

What is the historical spending pattern for SMEAD HANGING BOX BOTTOM, LTR. by the General Services Administration?

Historical spending data for this specific item, 'SMEAD HANGING BOX BOTTOM, LTR.', is not readily available in aggregated public databases without more precise product codes or keywords. However, the General Services Administration (GSA) consistently procures a wide array of office supplies through various contract vehicles, including Blanket Purchase Agreements (BPAs) and their call-offs. Annual spending on office supplies by the federal government typically runs into hundreds of millions of dollars. To understand historical patterns for this specific item, one would need to query detailed procurement records, potentially filtering by the NAICS code 339940 (Office Supplies (except Paper) Manufacturing) and looking for similar product descriptions over several fiscal years. The current award of $19.5 million for a short duration suggests either a significant, one-time need or a substantial increase in demand compared to previous periods for this particular item.

How does the unit cost of this contract compare to market rates for similar hanging box bottoms?

Determining the precise unit cost and comparing it to market rates is challenging with the provided data. The total award is $19,463,650 for a 15-day period, but the quantity of 'SMEAD HANGING BOX BOTTOM, LTR.' is not specified. To perform a valid comparison, we would need to know the exact number of units procured. For example, if 1 million units were procured, the unit cost would be approximately $19.46. If 10 million units were procured, the unit cost would be around $1.95. Market research for similar office supply items, such as hanging file folders or box bottoms, shows a wide price range depending on material, size, and brand, typically from under $1 to over $5 per unit for bulk purchases. Without the quantity, a direct comparison is speculative. The 'Fixed Price with Economic Price Adjustment' clause also introduces variability.

What are the potential risks associated with the 'Fixed Price with Economic Price Adjustment' contract type for this procurement?

The 'Fixed Price with Economic Price Adjustment' (FP-EPA) contract type introduces specific risks for the government. While it aims to protect the contractor from unforeseen fluctuations in material or labor costs (which can be relevant in manufacturing), it also means the final price paid by the government could exceed the initially estimated $19.5 million. The economic price adjustment is typically tied to an index (e.g., Consumer Price Index, Producer Price Index) or specific commodity prices. If these indices rise significantly during the contract period, the government will pay more. This risk is amplified by the short duration (15 days), which might suggest a need for rapid delivery where price volatility could be higher, or it could be a standard clause applied broadly. The government's risk is that the price adjustment leads to paying more than necessary if market conditions stabilize or decrease.

What is LC INDUSTRIES INC's track record with government contracts, particularly for office supplies?

LC INDUSTRIES INC has a significant history of receiving government contracts, primarily through the General Services Administration (GSA). They are a major supplier of various office products, including filing supplies, which aligns with the 'SMEAD HANGING BOX BOTTOM, LTR.' category. Publicly available contract databases show numerous awards to LC INDUSTRIES INC over the years, often through competitive bidding processes. Their performance history, including past delivery timeliness, product quality, and adherence to contract terms, would be documented within GSA's internal performance management systems. While specific details of past issues or commendations require deeper database dives, their continued success in winning federal contracts suggests a generally positive track record and established capability in serving government needs for office supplies.

Given the short 15-day duration, what is the likely urgency or purpose of this specific BPA Call?

A 15-day contract duration is exceptionally short and typically indicates a highly urgent or specific, immediate need. This could be for a surge requirement, a critical stock replenishment where existing inventory is depleted, or a time-sensitive project deadline. It might also represent a rapid fulfillment requirement for a specific event or operational tempo change within an agency. Alternatively, it could be a placeholder or a very small portion of a larger requirement being fulfilled via a BPA call for immediate needs, with subsequent calls planned. Without further context on the specific agency and the nature of the 'SMEAD HANGING BOX BOTTOM, LTR.', it's difficult to pinpoint the exact reason, but urgency and specificity are the most probable drivers for such a brief performance period.

Industry Classification

NAICS: Manufacturing › Other Miscellaneous Manufacturing › Office Supplies (except Paper) Manufacturing

Product/Service Code: HAND TOOLS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT (K)

Evaluated Preference: NONE

Contractor Details

Address: 4500 EMPEROR BLVD, DURHAM, NC, 27703

Business Categories: AbilityOne Program Participant, Category Business, Corporate Entity Tax Exempt, Manufacturer of Goods, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $19,464

Exercised Options: $19,464

Current Obligation: $19,464

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47QSCC21A0005

IDV Type: BPA

Timeline