GSA Awards $221K for Navy Certificates, High Unit Cost Raises Concerns
Contract Overview
Contract Amount: $22,141 ($22.1K)
Contractor: LC Industries Inc
Awarding Agency: General Services Administration
Start Date: 2026-04-07
End Date: 2026-04-14
Contract Duration: 7 days
Daily Burn Rate: $3.2K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT
Sector: Other
Official Description: BINDER, AWARDS CERTIFICATE, GOLD NAVY SE
Place of Performance
Location: DURHAM, DURHAM County, NORTH CAROLINA, 27703
Plain-Language Summary
General Services Administration obligated $22,141.18 to LC INDUSTRIES INC for work described as: BINDER, AWARDS CERTIFICATE, GOLD NAVY SE Key points: 1. High per-unit cost for certificates suggests potential overpricing. 2. Full and open competition was used, but price discovery may be limited. 3. Risk of inflated pricing due to specialized product and limited competition. 4. Sector is Office Supplies (except Paper) Manufacturing, a mature market.
Value Assessment
Rating: questionable
The per-unit cost of $3,163 for a certificate is exceptionally high compared to typical office supply items. Without specific details on the certificate's features, it's difficult to benchmark, but this price point warrants scrutiny.
Cost Per Unit: $3,163
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which is positive. However, the specialized nature of the item and the high unit price suggest that effective price discovery might have been hindered, potentially leading to a less than optimal price for taxpayers.
Taxpayer Impact: The high per-unit cost could result in taxpayers paying more than necessary for these specialized certificates.
Public Impact
Taxpayers may be overpaying for specialized Navy certificates. Potential for cost savings through better price negotiation or alternative sourcing. Ensuring fair market value for government purchases is crucial.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- High per-unit cost
- Potential for overpricing
- Limited price discovery despite open competition
Positive Signals
- Awarded under full and open competition
- Contract managed by GSA, a reputable agency
Sector Analysis
The Office Supplies (except Paper) Manufacturing sector is generally competitive. However, specialized items like custom certificates can command higher prices. Benchmarks for similar custom-engraved or specialized award items would be needed for a more precise comparison.
Small Business Impact
The data indicates the award went to LC INDUSTRIES INC, which is not identified as a small business. Further analysis would be needed to determine if small businesses had an opportunity to compete or were excluded.
Oversight & Accountability
The General Services Administration (GSA) manages this contract, implying a level of oversight. However, the high unit cost suggests that the effectiveness of this oversight in ensuring value for money needs further investigation.
Related Government Programs
- Office Supplies (except Paper) Manufacturing
- General Services Administration Contracting
- Federal Acquisition Service Programs
Risk Flags
- High per-unit cost
- Potential for overpricing
- Limited price discovery despite open competition
- Lack of small business participation noted
Tags
office-supplies-except-paper-manufacturi, general-services-administration, nc, bpa-call, under-100k
Frequently Asked Questions
What is this federal contract paying for?
General Services Administration awarded $22,141.18 to LC INDUSTRIES INC. BINDER, AWARDS CERTIFICATE, GOLD NAVY SE
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 $22,141.18.
What is the period of performance?
Start: 2026-04-07. End: 2026-04-14.
What specific features or materials justify the $3,163 per-unit cost for these Navy certificates?
The high per-unit cost of $3,163 for a certificate is a significant outlier for office supplies. Without detailed specifications, it's impossible to determine the exact justification. Factors could include specialized materials, intricate design, custom engraving, security features, or unique branding requirements for the Navy. Further inquiry into the product's specifications is necessary to understand this pricing.
How can the government ensure better price discovery for specialized items awarded under full and open competition?
To improve price discovery for specialized items, agencies can conduct more thorough market research to identify potential suppliers and understand cost drivers. Utilizing pre-negotiated contract vehicles with established pricing for similar items, or employing more detailed statement of work requirements that encourage competitive bidding on specific features, can also help. Independent cost estimates and robust evaluation criteria are essential.
What is the potential taxpayer impact if these certificates are indeed overpriced?
If these certificates are overpriced, the taxpayer impact is direct financial loss, meaning more government funds are spent than necessary for the acquisition. This reduces the overall budget available for other essential services or programs. Even a seemingly small number of overpriced items can add up across numerous contracts, diminishing the efficiency of federal spending and potentially setting a precedent for future acquisitions.
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: $22,141
Exercised Options: $22,141
Current Obligation: $22,141
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: 47QSCC21A0005
IDV Type: BPA
Timeline
Start Date: 2026-04-07
Current End Date: 2026-04-14
Potential End Date: 2026-04-14 00:00:00
Last Modified: 2026-04-08
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