GSA awards $25,857 contract for cross-cut shredders, highlighting office supply needs

Contract Overview

Contract Amount: $25,858 ($25.9K)

Contractor: LC Industries Inc

Awarding Agency: General Services Administration

Start Date: 2026-04-08

End Date: 2026-04-15

Contract Duration: 7 days

Daily Burn Rate: $3.7K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT

Sector: Other

Official Description: SHREDDER, CROSS-CUT, 14 SHEETS, 9.5" THR

Place of Performance

Location: DURHAM, DURHAM County, NORTH CAROLINA, 27703

State: North Carolina Government Spending

Plain-Language Summary

General Services Administration obligated $25,857.73 to LC INDUSTRIES INC for work described as: SHREDDER, CROSS-CUT, 14 SHEETS, 9.5" THR Key points: 1. Contract value appears reasonable for specialized office equipment. 2. Full and open competition suggests a healthy market for shredders. 3. Limited duration of the contract may indicate a need for ongoing procurement. 4. Fixed Price with Economic Price Adjustment (EPA) offers some cost stability. 5. The award falls within the broader category of office supplies manufacturing. 6. Geographic concentration in North Carolina noted for this specific award.

Value Assessment

Rating: good

The contract value of $25,857.73 for 3694 units of cross-cut shredders translates to approximately $7 per unit. This price point seems competitive for office equipment of this nature, especially considering the specified sheet capacity and throat size. Benchmarking against similar federal procurements for office shredders would provide further insight, but initial assessment suggests fair value.

Cost Per Unit: $7.00 per unit (estimated)

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors were likely invited to bid. This approach generally fosters a competitive environment, leading to potentially better pricing and quality for the government. The specific number of bidders is not provided, but the competition type suggests a robust market.

Taxpayer Impact: Full and open competition ensures that taxpayers benefit from the most competitive pricing available in the market for these essential office supplies.

Public Impact

Federal agencies requiring secure document destruction will benefit from this contract. The contract delivers cross-cut shredders capable of handling 14 sheets at a time. The award is associated with North Carolina, potentially impacting local distribution or service. This procurement supports the operational needs of federal offices by providing necessary equipment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific bidder count limits full assessment of competitive intensity.
Economic Price Adjustment clause introduces potential for cost fluctuations over the contract term.

Positive Signals

Awarded under full and open competition, suggesting a competitive marketplace.
Contract provides essential equipment for secure document disposal.
Fixed price component offers a baseline cost certainty.

Sector Analysis

This contract falls within the broader office supplies and equipment manufacturing sector. The market for office equipment is diverse, with numerous manufacturers and distributors. Federal spending in this category is consistent, driven by the ongoing need for operational supplies across all agencies. Comparable spending benchmarks would involve aggregating data for similar shredder procurements across different agencies and contract vehicles.

Small Business Impact

The provided data indicates that this contract was not specifically set aside for small businesses (ss: false, sb: false). Therefore, the primary impact on the small business ecosystem would be through potential subcontracting opportunities, if any, or through competition with larger firms. Without specific subcontracting plans, it's difficult to quantify the direct impact on small businesses.

Oversight & Accountability

The General Services Administration (GSA) typically employs robust oversight mechanisms for its contracts, including the Federal Acquisition Service (FAS). Accountability is maintained through contract performance monitoring and adherence to federal acquisition regulations. Transparency is generally high for GSA contracts, with awards often publicly available. Inspector General jurisdiction would apply in cases of fraud or mismanagement.

Related Government Programs

Office Supplies Procurement
Document Security Equipment
General Services Administration Contracts
Federal Acquisition Service BPA Calls

Risk Flags

Limited bidder information provided for full and open competition.
Economic Price Adjustment introduces potential cost variability.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $25,857.73 to LC INDUSTRIES INC. SHREDDER, CROSS-CUT, 14 SHEETS, 9.5" THR

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 $25,857.73.

What is the period of performance?

Start: 2026-04-08. End: 2026-04-15.

What is the track record of LC INDUSTRIES INC. with federal contracts, particularly for office equipment?

LC Industries Inc. has a history of federal contracting, primarily through the General Services Administration (GSA). While specific details on their track record for office equipment like shredders require deeper analysis of contract databases, their presence as an awardee suggests they are an established supplier within the federal marketplace. Further investigation into their past performance ratings, delivery history, and any past issues or commendations related to similar procurements would provide a more comprehensive understanding of their reliability and capability in fulfilling this specific contract.

How does the per-unit cost of these shredders compare to similar federal contracts awarded over the past year?

The estimated per-unit cost of approximately $7.00 for these 14-sheet cross-cut shredders appears to be within a reasonable range for federal procurements. To provide a definitive comparison, a detailed analysis of recent GSA Schedule or other federal contract awards for similar shredders (e.g., by sheet capacity, cut type, and brand) would be necessary. Factors such as volume discounts, contract type (fixed-price vs. cost-plus), and the specific contract vehicle used can influence per-unit pricing. Without direct comparative data, this $7.00 benchmark is considered fair but could be further validated.

What are the primary risks associated with this contract, and how are they mitigated?

The primary risks associated with this contract include potential supply chain disruptions affecting delivery timelines, the possibility of economic price adjustments leading to costs exceeding initial projections, and the risk of equipment malfunction or failure impacting agency operations. Mitigation strategies likely involve the GSA's established vendor management processes, which include monitoring contractor performance and adherence to delivery schedules. The fixed-price component of the contract provides some cost certainty, while the economic price adjustment clause is designed to account for legitimate market fluctuations. Furthermore, the contract's short duration (7 days) minimizes long-term exposure to these risks.

How effective is the 'Full and Open Competition' strategy in ensuring value for money for this type of office equipment?

The 'Full and Open Competition' strategy is generally highly effective in ensuring value for money for office equipment like shredders. By allowing all responsible sources to submit bids, it fosters a competitive environment where multiple vendors vie for the contract. This competition typically drives down prices, encourages innovation in product offerings, and ensures that the government procures goods and services at market-competitive rates. While the specific number of bidders isn't detailed here, the chosen procurement method signals a commitment to maximizing taxpayer value by leveraging market forces.

What is the historical spending pattern for cross-cut shredders by the General Services Administration?

Historical spending patterns for cross-cut shredders by the GSA would reveal the frequency and volume of such procurements over time. Analyzing past contracts would indicate whether this $25,857 award is typical, an outlier, or part of a larger trend. It would also shed light on the average contract values, durations, and the primary vendors GSA has historically relied upon for this equipment. Understanding these patterns helps in forecasting future needs and budgeting, as well as assessing the stability and competitiveness of the market for these items.

What are the implications of the 'Fixed Price with Economic Price Adjustment' (EPA) contract type for budget predictability?

The 'Fixed Price with Economic Price Adjustment' (EPA) contract type offers a balance between cost certainty and flexibility. The 'Fixed Price' component ensures a baseline cost for the goods, providing a degree of budget predictability. However, the 'Economic Price Adjustment' clause allows for modifications to the price based on specified economic factors, such as changes in raw material costs or labor indices. While this protects the contractor from unforeseen market volatility, it introduces a degree of uncertainty for the government's budget. The extent of this uncertainty depends on the specific triggers and caps defined within the EPA clause, which are not detailed in the provided data.

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: $25,858

Exercised Options: $25,858

Current Obligation: $25,858

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47QSCC21A0005

IDV Type: BPA

Timeline