GSA awards $24K BPA Call for Clorox products, highlighting potential for price adjustments

Contract Overview

Contract Amount: $24,088 ($24.1K)

Contractor: LC Industries Inc

Awarding Agency: General Services Administration

Start Date: 2026-04-09

End Date: 2026-04-16

Contract Duration: 7 days

Daily Burn Rate: $3.4K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT

Sector: Other

Official Description: CLEAN-UP,CLOROX,128OZ

Place of Performance

Location: DURHAM, DURHAM County, NORTH CAROLINA, 27703

State: North Carolina Government Spending

Plain-Language Summary

General Services Administration obligated $24,087.7 to LC INDUSTRIES INC for work described as: CLEAN-UP,CLOROX,128OZ Key points: 1. Contract value appears low, suggesting a specific need or limited scope. 2. The use of a BPA Call indicates a pre-competed agreement, potentially streamlining future purchases. 3. Economic price adjustment clause introduces a risk of cost escalation over the contract term. 4. Limited duration of 7 days suggests a short-term or urgent requirement. 5. The contractor, LC Industries Inc., is a significant player in office supplies. 6. North Carolina is the specified location, potentially indicating a regional focus for this purchase.

Value Assessment

Rating: fair

The contract value of $24,087.70 for 128oz Clorox products is difficult to benchmark without more specific quantity information. The use of a BPA Call suggests that pricing was likely established during a broader competition for the underlying Blanket Purchase Agreement. The economic price adjustment clause, however, introduces uncertainty regarding the final cost and potential for overspending if market prices rise significantly. The short duration of 7 days implies a focused, potentially urgent need.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a Blanket Purchase Agreement (BPA) Call, which implies that the underlying BPA was competed on a full and open basis. The specific call order likely leveraged the pre-existing competition. The number of bidders for the original BPA is not specified, but the full and open nature suggests a robust competitive process was intended.

Taxpayer Impact: A full and open competition for the BPA generally benefits taxpayers by encouraging competitive pricing and potentially leading to better value. However, the specific details of the BPA's competition are not fully detailed here.

Public Impact

Federal agencies requiring cleaning and disinfectant supplies will benefit from this contract. The contract delivers 128oz bottles of Clorox products, essential for maintaining hygiene. The geographic impact is specified as North Carolina, suggesting a localized delivery or use. Workforce implications are minimal, primarily related to the logistics of supply and distribution.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Economic price adjustment clause could lead to increased costs beyond initial estimates.
Short contract duration may indicate a reactive procurement rather than strategic planning.
Limited information on the specific quantity of Clorox products makes value assessment challenging.

Positive Signals

Awarded under a BPA Call, suggesting a streamlined and potentially pre-vetted procurement process.
Contractor LC Industries Inc. is an established supplier, implying reliability.
Full and open competition for the underlying BPA likely ensured competitive pricing initially.

Sector Analysis

The procurement of cleaning and office supplies falls under the broader category of general administrative and operational support services. The market for cleaning supplies is highly competitive, with numerous manufacturers and distributors. Federal agencies often leverage GSA schedules and BPAs to procure these types of goods efficiently. Benchmarking this specific purchase is difficult without knowing the exact quantity and specific product codes, but the overall market is characterized by high volume and relatively stable pricing, barring significant supply chain disruptions or inflationary pressures.

Small Business Impact

The data indicates that small business participation (sb) is false, and there is no indication of a small business set-aside (ss). This suggests that the procurement was not specifically targeted towards small businesses. Subcontracting implications are not detailed, but for a contract of this size and nature, significant subcontracting to small businesses is unlikely unless mandated by the prime contractor's own business strategy.

Oversight & Accountability

Oversight for this contract would primarily fall under the General Services Administration (GSA), specifically the Federal Acquisition Service. As a BPA Call, it leverages the oversight established for the parent BPA. Transparency is facilitated through contract award databases. Accountability rests with LC Industries Inc. to fulfill the order and GSA to manage the BPA. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

GSA Schedules
Blanket Purchase Agreements (BPAs)
Office Supplies Procurement
Cleaning and Sanitation Supplies

Risk Flags

Potential for cost escalation due to Economic Price Adjustment clause.
Short contract duration may indicate reactive procurement.
Limited transparency on specific quantities and total value without further data.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $24,087.7 to LC INDUSTRIES INC. CLEAN-UP,CLOROX,128OZ

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 $24,087.7.

What is the period of performance?

Start: 2026-04-09. End: 2026-04-16.

What is the typical profit margin for cleaning supplies sold through GSA contracts?

Profit margins for cleaning supplies sold through GSA contracts can vary significantly based on the specific product, manufacturer, volume, and the terms negotiated within the contract. Generally, for high-volume, standardized items like cleaning solutions, margins might be tighter, often in the range of 10-20%. However, specialized cleaning equipment or unique formulations could command higher margins. The economic price adjustment clause in this specific contract adds a layer of complexity, as it allows for price changes based on market indices, which can impact both the contractor's margin stability and the government's cost predictability. Without access to the specific pricing structure within the BPA and the economic price adjustment formula, determining the exact profit margin is not feasible.

How does the economic price adjustment (EPA) clause typically function for cleaning supplies?

An Economic Price Adjustment (EPA) clause in a contract allows for an increase or decrease in the contract price based on specified economic factors, such as changes in the cost of raw materials, labor, or published index prices. For cleaning supplies, an EPA might be tied to the cost of key ingredients (like surfactants, disinfectants, or packaging materials) or a general index for manufactured goods. The specific formula for adjustment is negotiated and included in the contract. This clause aims to protect both the contractor from unforeseen cost increases and the government from paying excessively inflated prices if market conditions improve. The effectiveness of an EPA depends on the accuracy of the chosen index and the frequency of adjustments allowed.

What is the historical spending pattern for cleaning supplies by the General Services Administration?

The General Services Administration (GSA) is a primary channel for federal agencies to procure a wide range of supplies and services, including cleaning and sanitation products. Historical spending data indicates that GSA facilitates billions of dollars in transactions annually for office supplies and related items, with cleaning supplies constituting a significant portion. Spending fluctuates based on agency needs, federal budget allocations, and public health directives (e.g., increased demand during pandemics). GSA often utilizes large-scale contracts and BPAs to achieve economies of scale. Analyzing specific spending trends for cleaning supplies would require delving into GSA's procurement data, looking at categories like 'Office Supplies (except Paper) Manufacturing' (NAICS 339940) or specific Federal Supply Group codes related to janitorial and cleaning equipment and supplies.

What are the risks associated with a short contract duration like 7 days?

A contract duration of only 7 days, as seen in this BPA Call, typically indicates an urgent or short-term requirement. The primary risks include potential for rushed procurement processes, which might limit thorough vetting of offers or lead to less competitive pricing if speed is prioritized over competition. It can also signal a lack of long-term planning, potentially leading to recurring urgent procurements that are less efficient and more costly than strategic, longer-term contracts. For the supplier, a very short duration might mean logistical challenges in fulfilling the order promptly and efficiently. However, in the context of a BPA Call, it signifies a specific, immediate need fulfilled under an existing, presumably well-competed, framework agreement.

How does the 'Office Supplies (except Paper) Manufacturing' NAICS code relate to this contract?

The North American Industry Classification System (NAICS) code 339940, 'Office Supplies (except Paper) Manufacturing,' is assigned to establishments primarily engaged in manufacturing office supplies, excluding paper products. This includes items like pens, pencils, binders, staplers, and importantly, cleaning and maintenance supplies used in office environments. The inclusion of Clorox products, which are cleaning and disinfectant supplies, aligns with the broader scope of this NAICS code, as these are essential for maintaining office facilities. The GSA uses these codes to categorize procurements and understand the industrial landscape from which they are sourcing goods and services.

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: $24,088

Exercised Options: $24,088

Current Obligation: $24,088

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47QSCC21A0005

IDV Type: BPA

Timeline