GSA awards $3.8M contract for cleaning supplies to RITE-KEM, INC. under full and open competition

Contract Overview

Contract Amount: $3,875 ($3.9K)

Contractor: Rite-Kem, Inc.

Awarding Agency: General Services Administration

Start Date: 2026-04-10

End Date: 2026-04-16

Contract Duration: 6 days

Daily Burn Rate: $646/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT

Sector: Other

Official Description: CLOTH,CLEANING

Place of Performance

Location: TUPELO, LEE County, MISSISSIPPI, 38803

State: Mississippi Government Spending

Plain-Language Summary

General Services Administration obligated $3,875.08 to RITE-KEM, INC. for work described as: CLOTH,CLEANING Key points: 1. Contract awarded for cleaning supplies (NAICS 325611). 2. RITE-KEM, INC. is the awardee. 3. Competition method: Full and Open. 4. Contract type: Fixed Price with Economic Price Adjustment. 5. Duration: 6 months.

Value Assessment

Rating: fair

The contract value of $3.88M for a 6-month period appears reasonable for cleaning supplies. Benchmarking against similar GSA schedules or large-scale cleaning supply contracts would provide a clearer picture of value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded using full and open competition, suggesting a robust price discovery process. This method typically leads to competitive pricing as multiple vendors can bid.

Taxpayer Impact: The use of full and open competition is generally beneficial for taxpayers, as it promotes competitive pricing and potentially lower costs for government procurement.

Public Impact

Ensures availability of essential cleaning supplies for federal agencies. Supports the Soap and Other Detergent Manufacturing sector. Provides RITE-KEM, INC. with a significant federal contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Economic Price Adjustment clause could lead to cost increases.
Short contract duration may necessitate future re-competition and transition costs.

Positive Signals

Awarded under full and open competition.
Contract supports a critical government need.

Sector Analysis

The Soap and Other Detergent Manufacturing sector (NAICS 325611) is a mature industry. Federal spending in this area is consistent, supporting agency operational needs. Benchmarks are typically driven by volume and specific product formulations.

Small Business Impact

While this contract was awarded under full and open competition, there is no specific indication of small business participation or set-aside. Future contracts could explore opportunities for small businesses in this sector.

Oversight & Accountability

The General Services Administration (GSA) Federal Acquisition Service is responsible for this procurement. Standard GSA oversight procedures should apply, ensuring compliance and accountability throughout the contract lifecycle.

Related Government Programs

Soap and Other Detergent Manufacturing
General Services Administration Contracting
Federal Acquisition Service Programs

Risk Flags

Economic Price Adjustment clause.
Short contract duration (6 months).
No explicit small business participation noted.
Potential for price volatility in raw materials.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $3,875.08 to RITE-KEM, INC.. CLOTH,CLEANING

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 $3,875.08.

What is the period of performance?

Start: 2026-04-10. End: 2026-04-16.

What is the projected cost savings from using full and open competition for this cleaning supply contract?

Full and open competition generally leads to cost savings by fostering a competitive environment where vendors strive to offer the best prices. While a precise figure is unavailable without a baseline comparison, this method is expected to yield more favorable pricing than sole-source or limited competition scenarios, ultimately benefiting taxpayers through efficient government spending.

What are the potential risks associated with the 'Fixed Price with Economic Price Adjustment' clause in this contract?

The primary risk of an Economic Price Adjustment (EPA) clause is that it allows for price increases based on fluctuations in the cost of raw materials or labor. This can lead to higher-than-anticipated spending for the government if market conditions drive up input costs, potentially eroding cost savings achieved through competition.

How effectively does this contract ensure the consistent supply of cleaning products to federal agencies?

The contract's 6-month duration and fixed-price structure with EPA aim to ensure a consistent supply of cleaning products. However, the short term may require frequent re-competition, potentially introducing supply chain disruptions if a new vendor is not secured promptly. The EPA clause helps mitigate supplier risk related to cost volatility.

Industry Classification

NAICS: Manufacturing › Soap, Cleaning Compound, and Toilet Preparation Manufacturing › Soap and Other Detergent Manufacturing

Product/Service Code: CLEANING EQPT AND SUPPLIES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

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

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: $3,875

Exercised Options: $3,875

Current Obligation: $3,875

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47QSWA23A001F

IDV Type: BPA

Timeline