National Industries for the Blind awarded $5.3M contract for plastic bags, with limited competition

Contract Overview

Contract Amount: $5,303 ($5.3K)

Contractor: National Industries for the Blind

Awarding Agency: General Services Administration

Start Date: 2026-04-09

End Date: 2026-04-16

Contract Duration: 7 days

Daily Burn Rate: $758/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT

Sector: Other

Official Description: PLASTIC BAGS

Place of Performance

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

State: Missouri Government Spending

Plain-Language Summary

General Services Administration obligated $5,303 to NATIONAL INDUSTRIES FOR THE BLIND for work described as: PLASTIC BAGS Key points: 1. The contract value of $5.3 million for plastic bags represents a significant portion of the agency's spending in this category. 2. The procurement method indicates limited competition, potentially impacting price competitiveness. 3. The short duration of the contract (7 days) suggests an urgent or specific need. 4. The fixed-price with economic price adjustment contract type introduces potential for cost fluctuations. 5. The award to National Industries for the Blind aligns with specific government initiatives to support blind individuals. 6. The absence of small business set-aside flags suggests this contract did not prioritize small business participation.

Value Assessment

Rating: fair

Benchmarking the value for plastic bags is challenging without specific quantity and quality details. However, a $5.3 million award for a 7-day delivery order suggests a substantial volume or specialized type of bag. Comparing this to similar contracts for bulk office supplies or industrial materials would be necessary for a precise value assessment. The economic price adjustment clause introduces a variable that could increase the final cost beyond the initial estimate, warranting close monitoring.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under a 'not available for competition' basis, which is a form of limited competition. This typically occurs when a specific entity is the only source capable of fulfilling the requirement, often due to unique capabilities or existing mandates. The limited competition means there was no opportunity for multiple vendors to bid, potentially leading to less aggressive pricing than in a fully open market.

Taxpayer Impact: Limited competition can result in higher costs for taxpayers as the government may not achieve the most favorable pricing achievable through a competitive bidding process.

Public Impact

The primary beneficiary is the National Industries for the Blind, fulfilling its mission to employ blind individuals. The contract delivers essential plastic bags, likely for use across various government agencies and facilities. The geographic impact is national, as the General Services Administration serves federal agencies nationwide. The contract supports employment opportunities for blind individuals, contributing to workforce inclusion.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition raises concerns about potential overpayment and lack of price innovation.
The short contract duration might indicate a reactive procurement rather than strategic planning.
Economic price adjustment clauses can obscure the true final cost and budget predictability.

Positive Signals

Supports a mandated organization (National Industries for the Blind) that provides employment for blind individuals.
Ensures the supply of essential goods (plastic bags) to federal agencies.
The award mechanism, while limited, likely adheres to specific legal or policy frameworks for supporting blind enterprises.

Sector Analysis

The procurement of plastic bags falls under the broader category of office supplies and stationery, a mature market with numerous suppliers. However, this specific contract's award to National Industries for the Blind suggests it might be part of a program prioritizing specific manufacturers or social enterprises. Comparable spending benchmarks for bulk plastic bag purchases by large organizations would be relevant, but the unique awardee context makes direct comparison difficult.

Small Business Impact

This contract was not awarded as a small business set-aside. The awardee, National Industries for the Blind, is a large organization focused on employing blind individuals, not specifically a small business. There is no indication of subcontracting requirements for small businesses within this award, suggesting limited direct impact on the small business ecosystem for this specific procurement.

Oversight & Accountability

Oversight for this contract would primarily fall under the General Services Administration (GSA), specifically the Federal Acquisition Service. The contract's fixed-price nature with economic price adjustment requires monitoring of price changes. Transparency is generally maintained through federal procurement databases, but the limited competition aspect means less public scrutiny on the bidding process itself. Inspector General jurisdiction would apply if any fraud or mismanagement were suspected.

Related Government Programs

Office Supplies Procurement
Federal Contracts for Blind-Employed Individuals
General Services Administration Supply Contracts

Risk Flags

Limited competition may lead to higher prices.
Economic price adjustment introduces cost uncertainty.
Short contract duration suggests potential urgency or lack of long-term planning.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $5,303 to NATIONAL INDUSTRIES FOR THE BLIND. PLASTIC BAGS

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 $5,303.

What is the period of performance?

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

What is the specific type and quantity of plastic bags being procured under this contract?

The provided data does not specify the exact type (e.g., trash bags, food storage bags, custom-printed bags) or the precise quantity of plastic bags. The North American Industry Classification System (NAICS) code 453210, 'Office Supplies and Stationery Stores,' is broad. Without this detail, it is difficult to accurately benchmark the unit price or assess the overall value for money. The contract value of $5.3 million for a 7-day delivery period suggests a significant volume, but the lack of specifics prevents a granular analysis of cost-effectiveness.

How does the pricing of these plastic bags compare to market rates for similar products?

Direct comparison to market rates is challenging without knowing the specific type, size, material thickness, and quantity of the plastic bags. The award to National Industries for the Blind, an organization mandated to employ blind individuals, may involve pricing structures that differ from purely commercial market rates. While the contract includes an economic price adjustment, the base pricing mechanism is fixed. A thorough analysis would require obtaining quotes from commercial suppliers for comparable bulk orders and factoring in any unique specifications or delivery requirements stipulated in the GSA contract.

What are the risks associated with the 'fixed price with economic price adjustment' contract type for this procurement?

The primary risk of a 'fixed price with economic price adjustment' (FPEPA) contract is cost uncertainty for the government. While the base price is fixed, the economic price adjustment clause allows for increases based on fluctuations in specific economic indicators (e.g., raw material costs, labor indices). This can lead to the final cost exceeding initial budget projections. For the government, this means potential overspending if input costs rise significantly. For the contractor, it mitigates the risk of unforeseen cost increases impacting profitability. Close monitoring of the economic indicators tied to the adjustment is crucial for managing taxpayer funds effectively.

What is the historical spending pattern for plastic bags by the General Services Administration?

The provided data does not include historical spending patterns for plastic bags by the GSA. To assess this, one would need to query federal procurement databases (like FPDS or USASpending.gov) for previous contracts awarded under NAICS code 453210 or related categories for 'bags' or 'office supplies' by the GSA. Analyzing past spending would reveal trends in contract values, awardees, competition levels, and pricing, providing context for the current $5.3 million award and its duration. Understanding historical spending is key to identifying potential anomalies or consistent patterns in procurement.

What specific criteria led to the 'not available for competition' determination for this contract?

The data indicates the contract was 'NOT AVAILABLE FOR COMPETITION,' which is a specific justification under federal acquisition regulations. This typically means only one source is capable of meeting the requirement. For National Industries for the Blind (NIB), this is often due to their status under the Javits-Wagner-O'Day Act, which mandates that the government procure certain products and services from non-profit agencies employing blind individuals. NIB is often the sole source for specific items under this program, justifying a non-competitive award to fulfill the government's social and legal obligations.

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: $5,303

Exercised Options: $5,303

Current Obligation: $5,303

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