GSA Awards $3.78M for Office Supplies to RITE-KEM, Inc. with No Competition

Contract Overview

Contract Amount: $3,783 ($3.8K)

Contractor: Rite-Kem, Inc.

Awarding Agency: General Services Administration

Start Date: 2026-04-09

End Date: 2026-04-29

Contract Duration: 20 days

Daily Burn Rate: $189/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FOLDER, FILE: - SEE ATTACHED DOCUMENT FOR DETAIL.

Place of Performance

Location: TUPELO, LEE County, MISSISSIPPI, 38801

State: Mississippi Government Spending

Plain-Language Summary

General Services Administration obligated $3,782.5 to RITE-KEM, INC. for work described as: FOLDER, FILE: - SEE ATTACHED DOCUMENT FOR DETAIL. Key points: 1. Significant contract value for office supplies. 2. Sole-source award limits competitive pricing. 3. Potential risk of overpayment due to lack of competition. 4. Sector: Manufacturing (Office Supplies).

Value Assessment

Rating: questionable

The contract value of $3.78M for office supplies is substantial. Without competitive bidding, it's difficult to assess if this price is fair market value compared to similar contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed under SAP, indicating a sole-source or limited competition award. This lack of competition likely prevented price discovery and may have led to a higher price for taxpayers.

Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive bidding, potentially increasing the overall cost of office supplies.

Public Impact

Federal agencies may face higher costs for essential office supplies. Limited availability of competitive options for this specific product category. Potential for reduced innovation and quality without market pressure.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of price competition
Potential for overpricing

Positive Signals

Contract awarded to a specific vendor

Sector Analysis

The office supplies sector is generally competitive, with many manufacturers and distributors. A sole-source award in this category is unusual and warrants scrutiny regarding justification.

Small Business Impact

The data does not indicate whether RITE-KEM, Inc. is a small business. The award method suggests limited consideration for small business set-asides.

Oversight & Accountability

The lack of competition raises questions about the oversight process and whether alternative, more competitive methods were adequately explored before awarding this contract.

Related Government Programs

Office Supplies (except Paper) Manufacturing
General Services Administration Contracting
Federal Acquisition Service Programs

Risk Flags

Sole-source award raises concerns about fair pricing.
Lack of competition may lead to suboptimal value.
Potential for higher costs to taxpayers.
Need for clear justification for sole-source procurement.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $3,782.5 to RITE-KEM, INC.. FOLDER, FILE: - SEE ATTACHED DOCUMENT FOR DETAIL.

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 $3,782.5.

What is the period of performance?

Start: 2026-04-09. End: 2026-04-29.

What is the justification for awarding this contract on a sole-source basis for office supplies?

The justification for a sole-source award is critical. Typically, such awards are reserved for unique circumstances where only one source can fulfill the requirement. For a common category like office supplies, a robust justification is expected, detailing why competition was not feasible or advantageous.

What is the estimated price difference compared to a competitive award?

Without a competitive process, it's impossible to provide an exact price difference. However, historical data and market analysis suggest that sole-source contracts can be 10-30% higher than competitively awarded ones, depending on the product and market dynamics.

How will the government ensure value for money on future procurements in this category?

To ensure value for money, the agency should explore competitive contracting methods for future office supply needs. This could involve breaking down the requirement into smaller lots, conducting market research to identify potential bidders, and utilizing pre-negotiated contract vehicles.

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: $3,783

Exercised Options: $3,783

Current Obligation: $3,783

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Timeline