GSA awards $940K for steel mobile file cabinets, highlighting potential for price adjustments

Contract Overview

Contract Amount: $940,765 ($940.8K)

Contractor: LC Industries Inc

Awarding Agency: General Services Administration

Start Date: 2026-04-02

End Date: 2026-04-09

Contract Duration: 7 days

Daily Burn Rate: $134.4K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT

Sector: Other

Official Description: STEEL MOBILE BF PED; 2 DRAWERS; 18D

Place of Performance

Location: DURHAM, DURHAM County, NORTH CAROLINA, 27703

State: North Carolina Government Spending

Plain-Language Summary

General Services Administration obligated $940,765.22 to LC INDUSTRIES INC for work described as: STEEL MOBILE BF PED; 2 DRAWERS; 18D Key points: 1. Value for money assessed through fixed-price with economic price adjustment terms. 2. Competition dynamics indicate a full and open process. 3. Risk indicators include potential price fluctuations due to economic adjustments. 4. Performance context is a short-term call against a larger BPA. 5. Sector positioning within office supplies manufacturing.

Value Assessment

Rating: fair

The contract value of $940,765.22 for mobile file cabinets appears to be within a reasonable range for a large quantity purchase, though specific benchmarking is difficult without detailed specifications. The inclusion of economic price adjustment (EPA) introduces a variable cost element, making a definitive value assessment challenging at the outset. Compared to similar government solicitations for office furniture, the pricing structure suggests a need for careful monitoring of the EPA clause to ensure cost control over the contract duration.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, indicating that multiple bidders had the opportunity to submit proposals. The specific number of bidders is not provided, but the full and open nature suggests a competitive environment that should theoretically drive favorable pricing. The use of a BPA call implies that the underlying BPA itself was competed, further supporting a competitive award.

Taxpayer Impact: A full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to lower prices and better value compared to sole-source or limited competitions.

Public Impact

Federal agencies requiring office supplies, specifically mobile file cabinets, will benefit from this contract. The services delivered include the provision of steel mobile file cabinets with two drawers. The geographic impact is primarily within North Carolina, where the contract is registered. Workforce implications are minimal, likely involving manufacturing and logistics personnel for the supplier.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost increases due to the economic price adjustment clause.
Short contract duration (7 days) may limit long-term price stability.
Lack of detailed specifications makes direct value comparison difficult.

Positive Signals

Awarded through full and open competition, suggesting competitive pricing.
Part of a larger BPA, potentially indicating pre-negotiated favorable terms.
Contractor has experience in manufacturing office supplies.

Sector Analysis

This contract falls within the broader office supplies manufacturing sector, specifically for metal office furniture. The market for office furniture is mature, with significant competition from both domestic and international manufacturers. Government procurement plays a substantial role in this sector, with agencies like GSA acting as major buyers. Benchmarking against similar government contracts for filing cabinets indicates that pricing can vary widely based on material, features, and quantity.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses mentioned. The primary contractor, LC Industries Inc., is a large business. This suggests that the direct impact on the small business ecosystem for this specific award is likely limited, though the overall BPA might include small business participation.

Oversight & Accountability

Oversight for this contract is managed by the General Services Administration (GSA) through its Federal Acquisition Service. Accountability is established through the contract terms, including the fixed-price with economic price adjustment structure. Transparency is facilitated by the public nature of federal contract awards. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

General Services Administration (GSA) Federal Supply Schedule
Office Supplies and Furniture Procurement
Blanket Purchase Agreements (BPAs)

Risk Flags

Economic Price Adjustment Clause
Short Contract Duration
Limited Specification Detail

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $940,765.22 to LC INDUSTRIES INC. STEEL MOBILE BF PED; 2 DRAWERS; 18D

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 $940,765.22.

What is the period of performance?

Start: 2026-04-02. End: 2026-04-09.

What is the typical price range for steel mobile file cabinets with two drawers under government contracts?

The average price for steel mobile file cabinets with two drawers under government contracts can vary significantly based on factors such as material gauge, drawer slides, locking mechanisms, finish quality, and quantity ordered. For a single unit, prices might range from $100 to $300. However, for bulk purchases like the $940,765.22 awarded by GSA, the per-unit cost is expected to be lower. Without the exact quantity and detailed specifications (e.g., dimensions, weight capacity, specific steel type), it's challenging to provide a precise benchmark. The "STEEL MOBILE BF PED; 2 DRAWERS; 18D" description suggests a standard model, and the awarded amount implies a substantial quantity, potentially bringing the per-unit cost down considerably, possibly in the $150-$250 range depending on the specifics and the economic price adjustment.

How does the 'Economic Price Adjustment' (EPA) clause typically function in contracts like this?

An Economic Price Adjustment (EPA) clause is designed to protect both the contractor and the government from unforeseen fluctuations in costs, typically related to labor, materials, or other economic factors. In this contract, the EPA likely allows for an increase or decrease in the contract price based on a pre-defined index or formula tied to specific economic indicators (e.g., Producer Price Index for relevant materials or labor). The 'FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT' designation means the base price is fixed, but it can be modified within the limits and conditions specified in the EPA clause. This protects the contractor from significant cost overruns due to market volatility but requires careful monitoring by the government to ensure the adjustments are justified and do not lead to excessive spending.

What is the significance of this award being a 'BPA CALL'?

A 'BPA CALL' signifies that this specific order is being placed against a pre-existing Blanket Purchase Agreement (BPA). A BPA is a simplified acquisition method that allows government agencies to fill anticipated repetitive needs for supplies or services by establishing charge accounts with qualified sources of supply. The underlying BPA itself would have undergone a competitive procurement process. Therefore, this 'BPA CALL' represents a specific task order or call-off from that established agreement. It suggests that the terms, conditions, and pricing structure (or at least the framework for them) were previously negotiated and competed when the BPA was initially awarded, streamlining the procurement process for this specific purchase.

What does the NAICS code '339940' indicate about the contractor's business?

The North American Industry Classification System (NAICS) code '339940' designates 'Office Supplies (except Paper) Manufacturing'. This classification indicates that LC Industries Inc. is primarily engaged in the manufacturing of office supplies, excluding paper products. This would typically include items such as pens, pencils, binders, staplers, and, relevant to this contract, office furniture like file cabinets. This code provides insight into the contractor's core business operations and manufacturing capabilities within the office supply sector, suggesting they are a direct manufacturer or assembler of such goods.

What are the potential risks associated with a short contract duration of 7 days?

A contract duration of only 7 days, as indicated for this BPA call, suggests a very specific and immediate need. The primary risk associated with such a short duration is the potential for rushed delivery issues or quality control problems if the contractor is under extreme time pressure. For the government, it might also mean less opportunity to fully evaluate the product's performance or the contractor's reliability before the contract period ends. However, for a simple item like file cabinets, a short duration might be sufficient if the items are readily available from stock or if this is simply the delivery window for a larger, ongoing requirement under the BPA. It also limits the exposure to price fluctuations under the EPA clause.

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: $940,765

Exercised Options: $940,765

Current Obligation: $940,765

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47QSCC21A0005

IDV Type: BPA

Timeline