GSA Awards $1.6M Contract for Plastic Bags to National Industries for the Blind

Contract Overview

Contract Amount: $16,272 ($16.3K)

Contractor: National Industries for the Blind

Awarding Agency: General Services Administration

Start Date: 2026-04-07

End Date: 2026-04-14

Contract Duration: 7 days

Daily Burn Rate: $2.3K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT

Sector: Other

Official Description: BAG PLASTIC

Place of Performance

Location: EARTH CITY, SAINT LOUIS County, MISSOURI, 63045

State: Missouri Government Spending

Plain-Language Summary

General Services Administration obligated $16,272 to NATIONAL INDUSTRIES FOR THE BLIND for work described as: BAG PLASTIC Key points: 1. The contract value is $1.627 million. 2. Competition is limited, with National Industries for the Blind as the sole awardee. 3. The primary risk is the lack of competitive pricing. 4. Spending falls under office supplies and stationery stores.

Value Assessment

Rating: questionable

Pricing is not benchmarked against similar contracts due to limited competition. The fixed-price with economic price adjustment clause introduces potential for cost increases over the contract term.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning no other vendors were considered. This limits price discovery and potentially leads to higher costs for taxpayers.

Taxpayer Impact: The lack of competition may result in higher prices than could be achieved through an open bidding process, impacting taxpayer funds.

Public Impact

Taxpayers may be overpaying for essential office supplies due to the sole-source nature of the award. The contract supports a specific organization, potentially aligning with social or economic policy goals. Limited transparency on pricing benchmarks makes it difficult to assess value for money.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition and price discovery.
Economic price adjustment clause can increase costs.
Lack of public pricing benchmarks.

Positive Signals

Supports a specific organization (National Industries for the Blind).

Sector Analysis

This contract falls under the 'Office Supplies and Stationery Stores' sector (NAICS 453210). Spending in this category is generally stable, but competitive bidding is crucial for cost efficiency.

Small Business Impact

The awardee, National Industries for the Blind, is a non-profit organization that employs individuals with blindness. This award does not appear to directly benefit small businesses.

Oversight & Accountability

The General Services Administration (GSA) manages this contract. Oversight should focus on ensuring the economic price adjustment clause is applied fairly and that the agency continues to explore competitive options for future procurements.

Related Government Programs

Office Supplies and Stationery Stores
General Services Administration Contracting
Federal Acquisition Service Programs

Risk Flags

Sole-source award
Lack of competition
Economic price adjustment
No clear value benchmark

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $16,272 to NATIONAL INDUSTRIES FOR THE BLIND. BAG PLASTIC

Who is the contractor on this award?

The obligated recipient is NATIONAL INDUSTRIES FOR THE BLIND.

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $16,272.

What is the period of performance?

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

What is the justification for the sole-source award, and how does it align with federal procurement regulations?

Sole-source awards are typically justified when only one responsible source can satisfy agency requirements. This often occurs due to unique capabilities, proprietary technology, or specific program mandates. The justification must be documented and approved according to FAR Part 6. Without this documentation, it's difficult to assess if the award truly represents the best value or if competitive avenues were overlooked.

How will the economic price adjustment clause be monitored to prevent excessive cost increases?

The economic price adjustment (EPA) clause allows for price changes based on specific economic factors, such as inflation or material cost fluctuations. Effective monitoring requires clear, objective triggers for adjustments, regular review of supporting data by the contracting officer, and comparison against market trends. The agency should have a process to validate any requested price increases against the EPA terms.

What is the estimated cost savings if this contract were awarded competitively?

Estimating competitive savings without a benchmark is challenging. However, sole-source contracts often carry a price premium compared to competitive ones. If similar plastic bags are widely available from multiple suppliers, a competitive process could likely yield savings of 10-30% or more, depending on the volume and specific product requirements. This could translate to hundreds of thousands of dollars saved.

Industry Classification

NAICS: Retail Trade › Office Supplies, Stationery, and Gift Stores › Office Supplies and Stationery Stores

Product/Service Code: OFFICE SUPPLIES AND DEVICES

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT (K)

Evaluated Preference: NONE

Contractor Details

Address: 3000 POTOMAC AVE, ALEXANDRIA, VA, 22305

Business Categories: AbilityOne Program Participant, Category Business, Corporate Entity Tax Exempt, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $16,272

Exercised Options: $16,272

Current Obligation: $16,272

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS02FW0003

IDV Type: IDC

Timeline