GSA awards $5,873 contract for shredding machines to RITE-KEM, INC. with no competition

Contract Overview

Contract Amount: $5,873 ($5.9K)

Contractor: Rite-Kem, Inc.

Awarding Agency: General Services Administration

Start Date: 2026-04-03

End Date: 2026-04-23

Contract Duration: 20 days

Daily Burn Rate: $294/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: SHREDDING MACHINE,P

Place of Performance

Location: TUPELO, LEE County, MISSISSIPPI, 38801

State: Mississippi Government Spending

Plain-Language Summary

General Services Administration obligated $5,873 to RITE-KEM, INC. for work described as: SHREDDING MACHINE,P Key points: 1. Contract awarded via purchase order for a short duration. 2. No small business set-aside was utilized for this procurement. 3. The contract is for shredding machines, a common office supply. 4. The fixed-price nature of the contract limits cost overrun risk. 5. The agency is the General Services Administration (GSA). 6. The contract was not competed under simplified acquisition procedures.

Value Assessment

Rating: questionable

The contract value is very low at $5,873, making a detailed value-for-money assessment difficult. Given the lack of competition and the short duration, it's hard to benchmark pricing effectively. However, for a single purchase order of shredding machines, the price is unlikely to be exorbitant, but without comparative data, its value proposition remains unclear.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded as 'NOT COMPETED UNDER SAP,' indicating it was likely procured through a sole-source or limited competition justification, or potentially under specific exceptions to full and open competition. The absence of a competitive process means that the government did not explore multiple vendor offerings, potentially missing out on better pricing or terms.

Taxpayer Impact: The lack of competition means taxpayers may not have received the most cost-effective solution available in the market for these shredding machines.

Public Impact

Federal agencies requiring document destruction services will benefit from this contract. The contract provides essential office equipment (shredding machines). The geographic impact is limited to Mississippi, where the contractor is located. Workforce implications are minimal, likely involving delivery and installation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition raises concerns about potential overpayment.
Short contract duration may indicate a one-time need or a pilot.
Absence of small business participation limits broader economic impact.

Positive Signals

Firm fixed-price contract provides cost certainty.
Awarded by GSA, a central procurement agency.
Contract is for a necessary office supply.

Sector Analysis

The office supplies sector is vast, with numerous manufacturers and distributors. Shredding machines fall under office equipment, a segment that sees consistent demand from government agencies. GSA's role is to facilitate efficient procurement of such goods and services across the federal government. This contract, though small, represents a typical transaction within this sector.

Small Business Impact

This contract was not awarded as a small business set-aside, nor does it appear to have specific subcontracting requirements for small businesses. The prime contractor, RITE-KEM, INC., is not explicitly identified as a small business in the provided data. This means the direct economic benefit to the small business ecosystem from this specific award is likely limited.

Oversight & Accountability

As a purchase order issued by the General Services Administration (GSA), this contract falls under GSA's established procurement oversight and accountability frameworks. Transparency is generally maintained through GSA's contract reporting systems. Specific oversight details for such a small award are not detailed but are managed within GSA's broader compliance structure.

Related Government Programs

GSA Schedule IT-70
Office Supplies Procurement
Federal Acquisition Service Contracts

Risk Flags

Lack of Competition
Potential for Non-Competitive Pricing

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $5,873 to RITE-KEM, INC.. SHREDDING MACHINE,P

Who is the contractor on this award?

The obligated recipient is RITE-KEM, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $5,873.

What is the period of performance?

Start: 2026-04-03. End: 2026-04-23.

What is the track record of RITE-KEM, INC. with federal contracts?

Based on the provided data, RITE-KEM, INC. has been awarded a single purchase order by the General Services Administration (GSA) for shredding machines. This indicates a limited, or at least not widely publicized, history of federal contracting activity specifically through this procurement vehicle. Further investigation into other contract vehicles or agencies would be necessary to fully assess their federal track record. The current data point suggests a recent or nascent engagement with the federal market, or a focus on specific niche procurements not captured by broader contract databases.

How does the pricing of these shredding machines compare to market rates?

Without specific details on the make, model, and capabilities of the shredding machines procured, a direct price comparison to market rates is challenging. The contract value is $5,873 for a 20-day period, which likely covers the purchase of a small quantity of machines. Given the lack of competition and the small dollar value, it's difficult to ascertain if this represents a competitive price. Typically, GSA leverages its purchasing power for better pricing, but this small, non-competed award makes benchmarking difficult. Market research for similar commercial shredding machines would be needed to provide a definitive comparison.

What are the primary risks associated with this contract?

The primary risks associated with this contract are minimal due to its small value and short duration. However, the lack of competition is a notable risk, as it suggests the government may not have secured the best possible price or terms. There's also a minor risk related to product suitability if the specific shredding machines do not meet the end-users' needs, although the short period and low cost mitigate the impact of such a failure. The risk of contractor performance failure is also low given the simple nature of the product and the short delivery window.

How effective is the GSA in procuring common office supplies like shredding machines?

GSA is generally effective in procuring common office supplies through various mechanisms, including GSA Schedules and bulk purchasing agreements, which often leverage competition to achieve significant cost savings. However, this specific contract highlights a scenario where competition was bypassed ('NOT COMPETED UNDER SAP'). While GSA aims for efficiency and value, individual awards like this, especially when not competed, may not always reflect the full potential of GSA's procurement power. The effectiveness in such cases depends heavily on the justification for not competing and the specific needs of the agency.

What are the historical spending patterns for shredding machines by the General Services Administration?

The provided data only reflects a single, recent purchase order for shredding machines by the GSA. It does not offer historical spending patterns. To understand GSA's historical spending on shredding machines, one would need to analyze broader contract databases, looking for multiple awards over several fiscal years, potentially across different GSA contracting vehicles or programs. This would reveal trends in volume, value, competition levels, and average prices paid over time for such equipment.

Industry Classification

NAICS: Manufacturing › Other Miscellaneous Manufacturing › Office Supplies (except Paper) Manufacturing

Product/Service Code: OFFICE SUPPLIES AND DEVICES

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 703 WESTMORELAND DR, TUPELO, MS, 38801

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $5,873

Exercised Options: $5,873

Current Obligation: $5,873

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Timeline