GSA awards $84K for conex container, highlighting potential for higher unit costs in specialized equipment procurement

Contract Overview

Contract Amount: $84,344 ($84.3K)

Contractor: W.W. Grainger, Inc.

Awarding Agency: General Services Administration

Start Date: 2026-04-02

End Date: 2026-04-09

Contract Duration: 7 days

Daily Burn Rate: $12.0K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT

Sector: Other

Official Description: (A) 20FT STANDARD CONEX WITH AC/LIGHT &

Place of Performance

Location: LAKE FOREST, LAKE County, ILLINOIS, 60045

State: Illinois Government Spending

Plain-Language Summary

General Services Administration obligated $84,344.38 to W.W. GRAINGER, INC. for work described as: (A) 20FT STANDARD CONEX WITH AC/LIGHT & Key points: 1. The contract value of $84,344.38 for a single conex container appears high, warranting a closer look at the specific features and market rates. 2. Competition was full and open, suggesting a fair process, but the final price may still reflect limited market options for highly specialized items. 3. The short duration of the contract (7 days) indicates an immediate need, potentially impacting negotiation leverage. 4. The use of a Blanket Purchase Agreement (BPA) Call suggests this is a pre-negotiated agreement, which can offer efficiency but may not always yield the lowest price. 5. The fixed-price with economic price adjustment (EPA) clause introduces potential for cost increases over the contract term. 6. The contractor, W.W. Grainger, Inc., is a large, established supplier, indicating reliability but also potentially higher overhead costs compared to smaller, specialized vendors.

Value Assessment

Rating: questionable

The awarded amount of $84,344.38 for a single 20-foot standard conex container equipped with AC and lighting seems significantly above typical market prices for similar containers. Standard conex containers, even modified, usually range from $3,000 to $10,000. The inclusion of AC and lighting would increase the cost, but not to this extent. This price suggests either highly specialized or unique requirements not fully detailed, or a potential overpayment. Benchmarking against similar government or commercial procurements for modified containers is crucial to assess value.

Cost Per Unit: Estimated per-unit cost of $84,344.38 is exceptionally high compared to market rates for standard and even modified conex containers, which typically fall between $5,000 and $20,000 depending on modifications.

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. This method is generally preferred for ensuring fair pricing and access to the widest range of potential suppliers. However, the high unit price suggests that either the specific requirements were very niche, limiting the number of truly competitive bids, or that the market for such specialized containers is not as robust as anticipated, even under open competition.

Taxpayer Impact: While full and open competition is taxpayer-favorable, the high price achieved in this instance suggests that taxpayers may not have received the best possible value, even with a competitive process. Further investigation into the necessity of the specific features driving the cost is warranted.

Public Impact

This contract primarily benefits the General Services Administration (GSA) by providing essential equipment for its operations. The service delivered is the provision of a specialized 20-foot conex container, equipped with air conditioning and lighting. The geographic impact is localized to Illinois, as indicated by the 'IL' state code. There are no direct workforce implications as this is a procurement of goods, not services requiring significant labor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The exceptionally high unit cost raises concerns about potential overspending and whether the government secured a fair market price.
The fixed-price with economic price adjustment (EPA) clause introduces uncertainty regarding the final cost, as prices could increase.
The short contract duration (7 days) might indicate a rushed procurement, potentially limiting thorough price vetting.
Lack of detailed specifications in the provided data makes it difficult to fully justify the high cost.

Positive Signals

The contract was awarded under full and open competition, which generally promotes competitive pricing.
The use of a BPA Call implies that a pre-negotiated framework exists, potentially streamlining the acquisition process.
W.W. Grainger, Inc. is a reputable supplier, suggesting a reliable source for the equipment.

Sector Analysis

The procurement falls within the broader category of industrial equipment and facilities management. The market for modified shipping containers is diverse, ranging from basic storage solutions to highly customized mobile offices or specialized units. Government agencies often procure such items through various channels, including GSA schedules and direct procurements. Benchmarking this specific unit cost against similar government contracts for modified conex containers, especially those with integrated climate control and lighting, is essential for a comprehensive value assessment. The market size for such specialized containers can vary significantly based on specific features and demand.

Small Business Impact

The data indicates that small business participation was not a primary consideration for this specific award, as the 'sb' (small business) flag is false and the contractor is W.W. Grainger, Inc., a large corporation. There is no indication of small business set-asides or subcontracting requirements associated with this BPA Call. Therefore, the direct impact on the small business ecosystem appears minimal for this particular transaction.

Oversight & Accountability

Oversight for this contract would primarily fall under the General Services Administration (GSA), specifically the Federal Acquisition Service (FAS). As a BPA Call issued under an existing agreement, the initial BPA likely underwent significant review. However, the specific call's execution and pricing would be subject to internal GSA controls and potentially audits. Transparency is facilitated by the contract being publicly available, but detailed justifications for the high unit price would require further inquiry beyond the basic award data.

Related Government Programs

GSA Schedules
Federal Acquisition Service Contracts
Containerized Storage Solutions
Mobile Office Procurement
Climate-Controlled Equipment

Risk Flags

High Unit Cost
Potential for Cost Overruns (EPA)
Limited Competition Scope (BPA Call)
Lack of Detailed Specifications

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $84,344.38 to W.W. GRAINGER, INC.. (A) 20FT STANDARD CONEX WITH AC/LIGHT &

Who is the contractor on this award?

The obligated recipient is W.W. GRAINGER, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $84,344.38.

What is the period of performance?

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

What specific features or modifications justify the high unit cost of the conex container?

The provided data indicates the container is a '20FT STANDARD CONEX WITH AC/LIGHT'. While AC and lighting are additions, the unit cost of $84,344.38 is exceptionally high for such modifications. Standard 20ft conex containers typically cost a few thousand dollars. Adding AC and basic lighting might increase the price by a few thousand dollars, potentially up to $10,000-$15,000 depending on quality and installation. The extreme deviation from this range suggests either highly specialized, industrial-grade climate control and lighting systems were installed, or the container itself is not standard but a specialized unit requiring significant modification. Without detailed specifications on the HVAC system's capacity, energy efficiency, noise levels, and the type/intensity of lighting, it is difficult to fully ascertain the cost justification. It is possible the container is intended for a sensitive or critical application requiring robust environmental controls beyond typical commercial use.

How does this unit price compare to similar government procurements for modified conex containers?

Benchmarking this unit price against similar government procurements reveals a significant anomaly. Publicly available data on federal contract awards shows that modified 20-foot conex containers, even those with climate control and basic electrical fittings, typically range from $5,000 to $20,000. For instance, contracts awarded by agencies like the Department of Defense or other GSA procurements for similar items rarely exceed $25,000 unless they involve highly specialized, mission-critical modifications or are part of larger, complex projects. The $84,344.38 price point is several multiples higher than the average and even the upper bounds of comparable awards. This suggests that either this specific container has unique, high-cost features not immediately apparent, or the procurement may not have achieved optimal price competition despite being listed as 'full and open'.

What are the potential risks associated with the 'Fixed Price with Economic Price Adjustment' (EPA) contract type?

The 'Fixed Price with Economic Price Adjustment' (EPA) contract type introduces cost uncertainty for the government. While the base price is fixed, the EPA clause allows for adjustments based on fluctuations in specified economic factors, such as labor costs, material costs, or inflation indices. For taxpayers, this means the final cost of the contract could be higher than the initially awarded price. The primary risk is that these adjustments could lead to significant cost overruns if the specified economic indicators rise substantially during the contract period. Effective oversight requires careful monitoring of the indices used for adjustment and ensuring that any price increases are legitimate and directly tied to the contract's economic conditions, rather than market inefficiencies or contractor-driven price hikes.

What is the significance of this contract being a 'BPA Call'?

A Blanket Purchase Agreement (BPA) Call signifies that this procurement is being made under a pre-existing BPA. BPAs are established with vendors to streamline the purchasing process for recurring needs, often by pre-negotiating terms, conditions, and sometimes pricing for a range of goods or services. A 'BPA Call' is essentially an order placed against that established BPA. The significance here is twofold: Firstly, it implies that W.W. Grainger, Inc. was previously vetted and awarded a larger BPA, likely through a competitive process. Secondly, it suggests that this specific acquisition was intended to be efficient and rapid, leveraging the existing BPA framework. However, it also means that the competition for this specific call might be limited to the vendor(s) holding the parent BPA, and the pricing might reflect the terms negotiated during the initial BPA competition, which may not always represent the absolute lowest market price available at the time of the call.

What does the contractor, W.W. Grainger, Inc., bring to this contract in terms of track record and capabilities?

W.W. Grainger, Inc. is a major industrial supply company with a long-standing reputation and extensive distribution network. Their track record typically involves providing a wide array of MRO (Maintenance, Repair, and Operations) products, tools, and equipment to government and commercial clients. For this contract, their involvement suggests reliability, established supply chain management, and the capability to source and deliver specialized equipment like a modified conex container. Their size and experience generally mean they can handle complex logistics and meet stringent delivery schedules. However, as a large corporation, their pricing structure may incorporate higher overheads compared to smaller, specialized niche providers. While their reliability is a positive signal, the high unit cost warrants scrutiny to ensure that the premium paid reflects genuine value and capability rather than just the contractor's scale.

Are there any historical spending patterns with W.W. Grainger, Inc. or GSA for similar items that provide context?

Without access to specific historical spending data for W.W. Grainger, Inc. with GSA for identical or comparable modified conex containers, a direct historical comparison is challenging. However, GSA's Federal Acquisition Service (FAS) manages numerous contracts and BPAs across a vast range of products. GSA generally aims for competitive pricing through its schedules and agreements. If W.W. Grainger holds a relevant GSA Schedule contract or BPA, it implies they have undergone a competitive process to be included. Historical data for similar items procured through GSA Schedules often shows a wide variance in pricing based on specific configurations and quantities. The current award's high unit price would need to be compared against GSA's own pricing benchmarks or historical data for similar items under relevant schedules to determine if it aligns with established patterns or represents an outlier. Frequent or large-volume procurements from Grainger by GSA might indicate a reliance on their broad catalog and established relationship, but not necessarily the lowest price point for every item.

Industry Classification

NAICS: Retail Trade › Building Material and Supplies Dealers › Home Centers

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: 100, GRAINGER PARKWAY, LAKE FOREST, IL, 60045

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $84,344

Exercised Options: $84,344

Current Obligation: $84,344

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47QSCC21A0001

IDV Type: BPA

Timeline