GSA awards $5.3M contract for toilet paper, raising questions about value and competition

Contract Overview

Contract Amount: $5,270 ($5.3K)

Contractor: National Industries for the Blind

Awarding Agency: General Services Administration

Start Date: 2026-04-08

End Date: 2026-04-15

Contract Duration: 7 days

Daily Burn Rate: $753/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT

Sector: Other

Official Description: PAPER, TOILET: - SEE ATTACHED DOCUMENT FOR DETAIL.

Place of Performance

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

State: Missouri Government Spending

Plain-Language Summary

General Services Administration obligated $5,269.6 to NATIONAL INDUSTRIES FOR THE BLIND for work described as: PAPER, TOILET: - SEE ATTACHED DOCUMENT FOR DETAIL. Key points: 1. Contract awarded for essential supplies, highlighting routine government procurement needs. 2. Limited competition raises concerns about potential overpayment and lack of market pressure. 3. Short contract duration suggests a tactical award rather than strategic sourcing. 4. Fixed-price with economic adjustment clause introduces potential for cost escalation. 5. Award to National Industries for the Blind may reflect specific social or policy objectives. 6. Lack of detailed justification for non-competitive award warrants further scrutiny.

Value Assessment

Rating: questionable

The contract value of $5.3 million for a 7-day delivery order of toilet paper appears high, especially given the short duration. Without comparable contract data for similar quantities and delivery terms, it is difficult to benchmark the value effectively. The fixed-price with economic price adjustment clause also introduces uncertainty regarding the final cost. The award to a single entity without competitive bidding suggests a lack of price discovery and potential for suboptimal value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. The justification for this approach is not provided in the available data. Sole-source awards can limit price competition, potentially leading to higher costs for the government compared to a fully competed procurement. The absence of multiple bids means there is no direct market comparison to assess if the price is competitive.

Taxpayer Impact: Taxpayers may be paying a premium due to the lack of competitive bidding. Without a competitive process, there is less incentive for the contractor to offer the lowest possible price.

Public Impact

Federal agencies requiring essential sanitary supplies will benefit from this contract. The contract ensures the availability of toilet paper for government facilities. The primary impact is on the operational continuity of government offices and installations. Workforce implications are minimal, likely involving logistics and distribution personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to inflated prices.
Economic price adjustment clause introduces cost uncertainty.
Short contract duration limits long-term strategic sourcing opportunities.
Absence of detailed justification for sole-source award is a transparency concern.

Positive Signals

Ensures supply of essential goods to government facilities.
Award to National Industries for the Blind may support specific social objectives.

Sector Analysis

The procurement of office supplies, including sanitary items like toilet paper, falls under the broad category of general supplies. The market for these goods is typically characterized by high volume, low margins, and significant competition among numerous manufacturers and distributors. Government contracts for such items are common, often managed through large purchasing vehicles like GSA Schedules. This specific award, however, deviates from typical competitive sourcing for commodity items, suggesting a specialized or urgent need, or a specific policy directive.

Small Business Impact

The data indicates this contract was not awarded to small businesses (ss: false, sb: false). There is no information provided regarding subcontracting plans or opportunities for small businesses. Therefore, the direct impact on the small business ecosystem appears limited for this specific award, and it does not appear to be a small business set-aside.

Oversight & Accountability

Oversight for this contract would typically fall under the General Services Administration (GSA), specifically the Federal Acquisition Service. The contract type (Fixed Price with Economic Price Adjustment) requires monitoring of price adjustments to ensure they align with the contract terms and economic indicators. Transparency is limited due to the sole-source nature and lack of detailed justification. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

GSA Schedules
Office Supplies Procurement
Commodity Contracts
Federal Supply Classes (FSC)

Risk Flags

Sole-source award without clear justification.
Potential for above-market pricing due to lack of competition.
Economic price adjustment clause introduces cost uncertainty.
Short contract duration limits strategic sourcing.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $5,269.6 to NATIONAL INDUSTRIES FOR THE BLIND. PAPER, TOILET: - SEE ATTACHED DOCUMENT FOR DETAIL.

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 $5,269.6.

What is the period of performance?

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

What is the specific justification for awarding this toilet paper contract on a sole-source basis?

The provided data indicates the contract was awarded as 'NOT AVAILABLE FOR COMPETITION' (ct: NOT AVAILABLE FOR COMPETITION), which is synonymous with a sole-source award. However, the specific justification or rationale behind this decision is not detailed in the available information. Typically, sole-source awards are justified under specific circumstances, such as when only one responsible source can provide the required supplies or services, or in cases of urgent and compelling need. Without this detailed justification, it is difficult to assess the necessity and appropriateness of bypassing the competitive bidding process. This lack of transparency raises concerns about potential inefficiencies and whether the government secured the best possible value.

How does the price of this contract compare to market rates for toilet paper?

Directly comparing the price of this contract to market rates is challenging without more specific details on the quantity, quality (e.g., ply, material), and delivery terms. The contract value is $5,269.60 for a 7-day delivery order. However, the data states 'PAPER, TOILET: - SEE ATTACHED DOCUMENT FOR DETAIL,' implying the exact quantity and specifications are not fully captured here. Given the sole-source nature, it is plausible that the price may not reflect the most competitive market rate. To perform a robust comparison, one would need to analyze GSA Advantage! or other government procurement databases for similar toilet paper contracts awarded competitively, as well as consult commercial wholesale pricing data, factoring in delivery costs and any economic price adjustments.

What are the risks associated with the 'Fixed Price with Economic Price Adjustment' contract type for toilet paper?

The 'Fixed Price with Economic Price Adjustment' (FP-EPA) contract type for toilet paper introduces a degree of risk related to cost volatility. While the base price is fixed, the economic price adjustment clause allows for modifications to the price based on specified economic factors, such as changes in raw material costs (e.g., pulp) or labor. This means the final cost to the government could be higher than initially anticipated if these economic indicators rise significantly during the contract period. For a commodity like toilet paper, where price fluctuations can occur, this clause protects the contractor from unforeseen cost increases but shifts some of that risk to the government, potentially impacting budget predictability and overall value for money.

What is the significance of the award being made to the National Industries for the Blind?

The award to the National Industries for the Blind (NIB) is significant as it likely falls under the Javits-Wagner-O'Day (JWOD) Act or its successor, the AbilityOne Program. This program prioritizes the procurement of products and services from non-profit agencies that employ individuals with significant disabilities, including blindness. While the primary goal is to create employment opportunities, government agencies are still expected to obtain fair market prices. The sole-source nature of this award might be directly linked to NIB's designation as a preferred provider for certain items under this program. This highlights a policy objective of supporting employment for disabled individuals alongside the procurement of necessary goods.

What does the short contract duration (7 days) imply about this procurement?

The extremely short contract duration of 7 days (from 2026-04-08 to 2026-04-15) for a delivery order suggests this is not a long-term strategic sourcing effort but rather a tactical procurement to meet an immediate or short-term need. This could indicate an emergency requirement, a gap-filling measure, or a need for a small quantity of supplies within a very narrow timeframe. Such short durations often preclude extensive market research and competitive bidding processes, potentially contributing to the sole-source award. It also means that this specific contract does not represent a sustained spending pattern or a significant portion of the government's overall toilet paper needs.

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: $5,270

Exercised Options: $5,270

Current Obligation: $5,270

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