GSA awards $684K for pneumatic tire services, with a 7-day duration and fixed-price adjustment

Contract Overview

Contract Amount: $684,134 ($684.1K)

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: $97.7K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT

Sector: Other

Official Description: IGNITION WK MID-BCK PNEU SYN TILT BCK AD

Place of Performance

Location: DURHAM, DURHAM County, NORTH CAROLINA, 27703

State: North Carolina Government Spending

Plain-Language Summary

General Services Administration obligated $684,134.43 to LC INDUSTRIES INC for work described as: IGNITION WK MID-BCK PNEU SYN TILT BCK AD Key points: 1. Contract awarded to LC Industries Inc. for specialized pneumatic tire services. 2. Short contract duration of 7 days suggests a specific, immediate need. 3. Fixed-price contract with economic price adjustment indicates potential for cost fluctuations. 4. No small business set-aside noted, suggesting a focus on broader market capabilities. 5. Awarded by the General Services Administration (GSA), a key federal procurement agency. 6. North Carolina is the specified state for service delivery. 7. The contract falls under the 'Office Supplies (except Paper) Manufacturing' NAICS code.

Value Assessment

Rating: fair

The contract value of $684,134.43 for a 7-day service period appears high, suggesting either a very specialized service or a significant quantity of goods. Benchmarking against similar short-term, specialized service contracts is difficult without more detailed scope information. The economic price adjustment clause introduces a variable that could increase the final cost beyond the initial award amount, warranting close monitoring.

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. The specific number of bidders is not provided, but this competitive approach generally aims to secure the best value for the government. The use of a BPA Call suggests this is a call against an existing Blanket Purchase Agreement, which itself was likely competed.

Taxpayer Impact: Full and open competition is intended to drive down prices through market forces, potentially saving taxpayer money by ensuring the government receives competitive bids.

Public Impact

Federal agencies requiring specialized pneumatic tire services will benefit from this contract. The services delivered are likely related to the maintenance or supply of specific types of tires. The geographic impact is limited to North Carolina. Workforce implications are likely minimal given the short duration and specialized nature of the service.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns due to the economic price adjustment clause.
Lack of transparency on the number of bidders limits assessment of competitive intensity.
High per-day cost suggests a need for detailed justification of service necessity and pricing.

Positive Signals

Awarded through full and open competition, promoting market fairness.
Contract managed by the General Services Administration, a reputable procurement body.
Clear end date provides a defined service period.

Sector Analysis

This contract falls within the broader manufacturing and supply sector, specifically related to industrial components. The NAICS code 339940 covers 'Office Supplies (except Paper) Manufacturing,' which seems an unusual fit for pneumatic tires unless it's a very niche application or part of a larger office equipment supply chain. Comparable spending benchmarks for such specialized, short-term tire services are not readily available, but the value suggests a high-demand or critical-need item.

Small Business Impact

The contract indicates that small businesses were not specifically targeted through a set-aside. While this doesn't preclude small businesses from participating in the competition, it means the award was not exclusively reserved for them. There is no information provided regarding subcontracting plans, so the direct impact on the small business ecosystem is unclear.

Oversight & Accountability

Oversight is likely managed by the General Services Administration (GSA) through its Federal Acquisition Service. Accountability measures would be tied to the contract terms and performance standards. Transparency is facilitated by the public nature of federal contract awards, though specific details on performance metrics are not detailed here. Inspector General jurisdiction would apply in cases of fraud or mismanagement.

Related Government Programs

General Services Administration Federal Supply Schedule
Vehicle Maintenance and Repair Services
Industrial Equipment Procurement

Risk Flags

Economic Price Adjustment Clause
Unusual NAICS Code Classification
Short Contract Duration

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $684,134.43 to LC INDUSTRIES INC. IGNITION WK MID-BCK PNEU SYN TILT BCK AD

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 $684,134.43.

What is the period of performance?

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

What is the specific nature of the 'pneumatic tire' service being procured, given the unusual NAICS code?

The NAICS code 339940, 'Office Supplies (except Paper) Manufacturing,' is indeed an atypical classification for pneumatic tire services. This suggests the tires might be for specialized office equipment (e.g., large printers, mailroom machinery) or that the contractor, LC Industries Inc., specializes in a broader range of manufactured goods that includes these specific tires, and this is the most fitting code available for their overall business. Without further details from the contract statement of work, it's difficult to ascertain the exact application. LC Industries Inc. is known for manufacturing products for the blind and visually impaired, which could involve specialized equipment requiring such tires.

How does the economic price adjustment (EPA) clause typically function in contracts of this nature?

An Economic Price Adjustment (EPA) clause is designed to protect both the contractor and the government from significant fluctuations in the cost of labor or materials. In this contract, the EPA would allow the price to be adjusted upwards or downwards based on a pre-defined index or formula related to the cost of producing or supplying pneumatic tires. For taxpayers, this introduces a degree of uncertainty in the final cost. The specific triggers and limits for the EPA would be detailed in the contract's full terms and conditions, requiring careful monitoring by the contracting officer to ensure fairness and prevent excessive price increases.

What is the typical contract duration for specialized tire services procured by the GSA?

Contract durations for specialized services can vary widely depending on the nature of the requirement. A 7-day duration, as seen in this award, is exceptionally short and typically indicates an urgent, one-time need, a pilot program, or a very specific, time-bound project. Longer-term contracts for ongoing maintenance or supply of tires might extend for months or years. The brevity of this contract suggests it's not for routine, long-term support but rather for a discrete task or immediate requirement.

What does the 'BPA CALL' award type signify in terms of procurement process?

A 'BPA CALL' indicates that this contract is a task order or call placed against an existing Blanket Purchase Agreement (BPA). BPAs are pre-negotiated agreements with vendors that simplify the process of acquiring supplies or services over a period of time. When a government agency needs a specific item or service covered by a BPA, they issue a 'call' or 'order' against that agreement. This method streamlines procurement, often leading to faster delivery and potentially better pricing due to pre-negotiated terms, assuming the underlying BPA was competitively awarded.

Are there any known performance issues or track record concerns with LC Industries Inc. regarding federal contracts?

A review of publicly available federal contract data does not immediately highlight widespread performance issues or significant concerns specifically tied to LC Industries Inc. for this type of specialized service. As a long-standing contractor, particularly with its mission to employ individuals with disabilities, its federal contracting history is generally viewed through that lens. However, for any specific contract, performance is assessed individually. The short duration and specific nature of this award mean that a comprehensive track record assessment for this exact service is limited.

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: $684,134

Exercised Options: $684,134

Current Obligation: $684,134

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47QSCC21A0005

IDV Type: BPA

Timeline