GSA awards $12.7M contract for office supplies to LC Industries Inc., a significant portion of which is for a specific region

Contract Overview

Contract Amount: $12,673 ($12.7K)

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: $1.8K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT

Sector: Other

Official Description: DRAPE-3WX72L-WG

Place of Performance

Location: DURHAM, DURHAM County, NORTH CAROLINA, 27703

State: North Carolina Government Spending

Plain-Language Summary

General Services Administration obligated $12,672.56 to LC INDUSTRIES INC for work described as: DRAPE-3WX72L-WG Key points: 1. The contract value of $12.7 million for a 7-day period suggests a high per-diem rate, warranting further investigation into the necessity of such a short duration for a large sum. 2. While the contract is for office supplies, the specific NAICS code (339940) points to manufacturing, indicating a potential focus on direct supply rather than general distribution. 3. The contract type, 'FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT', introduces potential for cost increases over the contract term, requiring careful monitoring. 4. The award to LC Industries Inc. under 'FULL AND OPEN COMPETITION' is positive, but the limited duration and high value raise questions about the scope and urgency. 5. The contract's geographic focus on North Carolina (SN: NORTH CAROLINA) suggests a localized need, which might not reflect broader federal procurement patterns for office supplies. 6. The absence of small business set-aside (SB: false) and the contractor's size (implied by the contract value) indicate this is a large-scale procurement not specifically targeting small businesses.

Value Assessment

Rating: questionable

The contract value of $12.7 million for a mere 7-day period is exceptionally high on a per-day basis. This suggests either an extremely urgent, large-scale need or a potential overestimation of requirements for the specified duration. Benchmarking against typical federal procurements for office supplies, especially those with short durations, is difficult due to the unusual parameters. Without more context on the specific items and quantities, it's hard to definitively assess value for money, but the short timeframe for such a large sum raises a red flag.

Cost Per Unit: N/A

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 is generally a positive sign for price discovery and achieving competitive pricing. However, the extremely short duration (7 days) for such a substantial award might have limited the number of bidders or the extent of their proposals, potentially impacting the competitive landscape.

Taxpayer Impact: A full and open competition is beneficial for taxpayers as it theoretically allows for the best prices to emerge. However, the unusual contract parameters may have constrained true competition, potentially leading to a less optimal outcome than a more standard procurement process.

Public Impact

Federal employees and agencies in North Carolina are the primary beneficiaries, receiving essential office supplies. The contract ensures the availability of specific manufactured office supplies, supporting daily operations within the General Services Administration's Federal Acquisition Service. The geographic impact is concentrated in North Carolina, suggesting a specific regional requirement or distribution hub. The contract supports the manufacturing sector for office supplies, potentially impacting the workforce within LC Industries Inc. and its supply chain.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The extremely high value relative to the short contract duration (7 days) suggests potential over-allocation of funds or an unusually urgent, large-scale, and localized demand.
The 'FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT' clause introduces risk of cost escalation, which needs careful monitoring to ensure taxpayer funds are protected.
The specific NAICS code points to manufacturing, which might imply a less competitive market compared to general office supply distributors, potentially impacting price.
The concentration of the award in North Carolina, without clear justification for such a large sum in a short period, warrants further inquiry into the specific needs met.

Positive Signals

The award was made through 'FULL AND OPEN COMPETITION', indicating a commitment to a competitive process and potentially fair pricing.
The contract is managed by the General Services Administration (GSA), an agency known for its procurement expertise and oversight.
The contractor, LC Industries Inc., is likely experienced in supplying federal agencies, suggesting a degree of reliability in delivery and product quality.

Sector Analysis

The office supplies manufacturing sector is a mature industry with established players. Federal procurement of office supplies is a significant market, often managed through large contracts and blanket purchase agreements. This contract, falling under NAICS code 339940 (Office Supplies (except Paper) Manufacturing), specifically targets the production of these goods. While the total federal spending on office supplies is substantial, this particular award represents a focused procurement, likely for specific types of manufactured items rather than general office consumables. Benchmarking this specific award is challenging due to its unique short duration and high value.

Small Business Impact

This contract does not appear to have a small business set-aside (SB: false). The substantial value of the award suggests it is likely beyond the scope of typical small business contracts. There is no explicit mention of subcontracting requirements for small businesses, indicating that the primary focus is on the prime contractor's capabilities. This procurement does not seem designed to directly benefit the small business ecosystem.

Oversight & Accountability

The General Services Administration (GSA) is responsible for overseeing this contract. As a large federal agency, GSA has established procurement regulations and oversight mechanisms. The contract's 'FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT' clause will require diligent monitoring to manage potential cost increases. Transparency regarding the specific justification for the high value and short duration would enhance accountability. Inspector General oversight would typically apply to GSA procurements, ensuring compliance and investigating potential fraud or mismanagement.

Related Government Programs

GSA Federal Supply Schedule
Office Supplies Procurement
Manufacturing Contracts
Economic Price Adjustment Clauses

Risk Flags

High contract value for short duration
Potential for cost escalation due to EPA clause
Lack of detailed justification for specific need

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $12,672.56 to LC INDUSTRIES INC. DRAPE-3WX72L-WG

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 $12,672.56.

What is the period of performance?

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

What is the specific justification for awarding $12.7 million for office supplies over a 7-day period?

The extremely high value of $12.7 million for a contract spanning only 7 days is highly unusual for standard office supplies. Typically, such large sums are associated with longer-term contracts or significant, one-time bulk purchases for major events or emergencies. Without further details, it is difficult to ascertain the precise need. Possible explanations include an urgent, large-scale deployment requiring immediate provisioning of specific manufactured office supplies in North Carolina, or a contractual mechanism where a large amount is allocated for a very short, critical period. Further investigation into the specific items procured and the operational context is necessary to understand this allocation and assess its value for money.

How does the per-unit cost of office supplies under this contract compare to market rates or other federal contracts?

Determining the per-unit cost is challenging without knowing the specific items and quantities included in the $12.7 million award for the 7-day period. The contract is for 'Office Supplies (except Paper) Manufacturing' (NAICS 339940), suggesting a focus on manufactured goods rather than general distribution. If the contract involves specialized manufactured items, direct comparison to general market rates for common office supplies might not be appropriate. However, the sheer volume implied by the dollar amount over such a short duration suggests that even for specialized items, the unit costs would need to be carefully scrutinized against industry benchmarks for similar manufactured goods. Without itemized data, a precise comparison is not feasible.

What are the potential risks associated with the 'FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT' clause in this contract?

The 'FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT' (EPA) clause allows for adjustments to the contract price based on fluctuations in specified economic factors, such as labor or material costs. The primary risk for the government is potential cost escalation. If the economic indicators used for adjustment rise significantly, the total cost of the contract could exceed the initial fixed price, potentially leading to a higher expenditure than initially budgeted. This necessitates robust monitoring by the GSA to ensure that any price adjustments are justified by genuine economic changes and do not result in excessive profits for the contractor. The short duration of the contract might mitigate some of this risk, but it still requires diligent oversight.

What is the track record of LC Industries Inc. in fulfilling federal contracts, particularly for office supplies?

LC Industries Inc. is a significant entity, often associated with employing individuals who are blind or visually impaired, aligning with specific federal mandates. While specific contract history details are not provided in the summary data, their involvement in federal procurement, especially for manufactured goods, suggests they have experience navigating federal acquisition processes. Their ability to secure a contract of this magnitude, even for a short duration, implies a level of capability and past performance that met the GSA's requirements. However, a deeper dive into their past performance on similar contracts, including delivery timeliness, quality, and adherence to terms, would provide a more comprehensive assessment of their reliability.

How does this contract fit into the broader federal spending patterns for office supplies, considering its specific nature and duration?

This contract appears to be an outlier compared to typical federal spending patterns for office supplies. Most federal agencies procure office supplies through GSA Schedules, Indefinite Delivery/Indefinite Quantity (IDIQ) contracts, or other competitive solicitations that span longer periods. The $12.7 million value concentrated over just 7 days, coupled with the NAICS code indicating manufacturing, suggests a highly specific, possibly urgent, requirement rather than routine replenishment. It may represent a bulk purchase of manufactured items for a particular project, event, or emergency response within North Carolina. Understanding this specific need is crucial to contextualize its deviation from broader, more consistent spending trends.

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: $12,673

Exercised Options: $12,673

Current Obligation: $12,673

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47QSCC21A0005

IDV Type: BPA

Timeline