GSA awards $72.5K contract for wide-span shelving, highlighting office supply manufacturing sector

Contract Overview

Contract Amount: $72,523 ($72.5K)

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: $10.4K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT

Sector: Other

Official Description: STORAGE,WIDESPAN SHELVING,STARTER 72" W

Place of Performance

Location: DURHAM, DURHAM County, NORTH CAROLINA, 27703

State: North Carolina Government Spending

Plain-Language Summary

General Services Administration obligated $72,523.02 to LC INDUSTRIES INC for work described as: STORAGE,WIDESPAN SHELVING,STARTER 72" W Key points: 1. Contract value of $72.5K for specialized shelving indicates focused procurement within office supplies. 2. Awarded to LC Industries Inc., a manufacturer in the office supplies sector. 3. Short 7-day duration suggests a specific, immediate need or a call against an existing agreement. 4. Fixed Price with Economic Price Adjustment (FP/EPA) contract type introduces potential for cost fluctuations. 5. Procurement falls under the Federal Acquisition Service, indicating a centralized approach to acquiring common goods. 6. The North American Industry Classification System (NAICS) code 339940 points to the specific manufacturing sub-sector.

Value Assessment

Rating: good

The contract value of $72,523.02 for shelving appears reasonable for specialized office furniture. Benchmarking against similar GSA Schedule or Federal Supply Schedule (FSS) awards for office equipment would provide a more precise value-for-money assessment. The FP/EPA clause warrants monitoring for potential price increases, though the short duration may limit significant escalation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. The specific number of bidders is not provided, but this method generally promotes competitive pricing and allows the government to select the best value. The use of a BPA Call implies that a broader contract vehicle was already in place, which was then utilized for this specific requirement.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically drives down prices through market forces, ensuring the government obtains goods and services at competitive rates.

Public Impact

Federal agencies requiring office storage solutions will benefit from the availability of this shelving. The contract supports the manufacturing sector, specifically in the production of office supplies and equipment. The geographic impact is primarily within North Carolina, where the contractor is located, and potentially nationwide where the shelving is delivered. Workforce implications include jobs in manufacturing, logistics, and potentially installation related to the shelving production.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price escalation due to the Economic Price Adjustment (EPA) clause, especially given the short contract duration.
Limited visibility into the number of bidders and the specific competitive landscape for this particular shelving requirement.
Dependence on a single manufacturer (LC Industries Inc.) for this specific award, though competition was likely broader at the BPA level.

Positive Signals

Awarded through full and open competition, indicating a robust bidding process.
Contract supports a domestic manufacturer, potentially contributing to U.S. employment and industrial base.
Procurement through GSA's Federal Acquisition Service suggests adherence to established procurement standards and potential for leveraging existing agreements.

Sector Analysis

This contract falls within the broader office supplies and furniture manufacturing sector, specifically addressing the need for storage solutions like wide-span shelving. The NAICS code 339940 covers establishments primarily engaged in manufacturing office supplies (except paper). This sector is characterized by a mix of large manufacturers and specialized producers, with government procurement often leveraging GSA Schedules to access a wide range of products efficiently. Comparable spending benchmarks would involve analyzing other GSA awards for similar shelving or office furniture items.

Small Business Impact

This contract was awarded to LC Industries Inc. and does not appear to be a small business set-aside. There is no explicit mention of subcontracting requirements for small businesses within the provided data. The impact on the small business ecosystem is therefore likely minimal for this specific award, though LC Industries Inc. may engage small businesses in its supply chain.

Oversight & Accountability

Oversight for this contract would primarily fall under the General Services Administration (GSA), specifically the Federal Acquisition Service. Accountability measures are inherent in the contract terms, including delivery schedules and product specifications. Transparency is facilitated through public contract databases where such awards are reported. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

GSA Federal Supply Schedule (FSS) Contracts
Office Furniture Procurement
Industrial and Commercial Machinery and Equipment
Government Office Supply Contracts

Risk Flags

Economic Price Adjustment (EPA) clause may lead to cost increases.
Short contract duration (7 days) could indicate urgency or a limited scope.
Limited detail on specific shelving specifications and performance metrics.
Potential for supply chain disruptions affecting delivery within the short timeframe.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $72,523.02 to LC INDUSTRIES INC. STORAGE,WIDESPAN SHELVING,STARTER 72" W

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 $72,523.02.

What is the period of performance?

Start: 2026-04-07. End: 2026-04-14.

What is the track record of LC Industries Inc. in fulfilling government contracts, particularly for office furniture and shelving?

LC Industries Inc. is a significant manufacturer, often associated with providing employment opportunities for individuals who are blind or visually impaired, aligning with specific government social objectives. Their track record with government contracts, particularly through GSA Schedules, typically involves a range of office supplies and equipment. Specific performance data for this type of shelving would require a deeper dive into contract databases to assess on-time delivery, quality compliance, and any past performance issues. However, their established presence suggests a capacity to handle federal procurements. Further analysis would involve reviewing contract close-out reports and any available performance evaluations.

How does the awarded price of $72,523.02 compare to market rates for similar wide-span shelving units?

Directly comparing the total contract value to market rates for 'wide-span shelving' is challenging without specific product details (dimensions, load capacity, material). However, the value suggests a moderate quantity or specialized type of shelving. To benchmark, one would typically compare this award to similar items listed on GSA Advantage! or other federal supply schedules, looking at per-unit costs or cost per linear foot. Industry pricing for industrial shelving can vary widely, from tens to hundreds of dollars per linear foot depending on specifications. The FP/EPA clause also introduces a variable element. A detailed comparison would involve identifying comparable products and their pricing from multiple sources, including commercial vendors and other government contracts.

What are the primary risks associated with this contract, considering its fixed-price with economic price adjustment (FP/EPA) structure and short duration?

The primary risk is potential price escalation due to the Economic Price Adjustment (EPA) clause. While the contract duration is short (7 days), unforeseen market fluctuations in raw materials (steel, etc.) or transportation costs could lead to price increases passed on to the government. Another risk is the potential for limited competition if the specific shelving required is highly specialized, although it was awarded under full and open competition. Ensuring the shelving meets all required specifications and performance standards within the short timeframe is also a consideration. Finally, the reliance on a single awardee for this specific call, even if from a broader BPA, means any performance issues could disrupt supply.

What is the expected effectiveness of this contract in meeting the government's storage needs?

The effectiveness hinges on the suitability of the 'STORAGE, WIDESPAN SHELVING, STARTER 72" W' product for the intended government use and the contractor's ability to deliver within the specified timeframe. Assuming the product meets all technical requirements and the awardee, LC Industries Inc., has a reliable supply chain and delivery process, the contract should be effective in fulfilling the immediate storage requirement. The short duration suggests it addresses a specific, perhaps urgent, need. The effectiveness is also tied to the overall value proposition – whether the acquired shelving provides adequate storage capacity and durability at a reasonable cost, which is supported by the full and open competition.

How does this contract fit into the broader historical spending patterns for office supplies and equipment by the General Services Administration?

This contract represents a small component of GSA's overall spending on office supplies and equipment. GSA historically spends billions annually on a vast array of goods and services through its various schedules and contract vehicles, including office furniture, supplies, and equipment. Awards like this one for shelving are typical, reflecting the ongoing need for functional workspaces across federal agencies. Analyzing historical data would show trends in procurement volume, average prices, and dominant contract types for similar items. This specific award, at $72.5K, is modest in the context of GSA's total budget but indicative of consistent demand for basic office infrastructure.

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: $72,523

Exercised Options: $72,523

Current Obligation: $72,523

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47QSCC21A0005

IDV Type: BPA

Timeline