GSA awards $6,636 for 40-lb laundry detergent containers from Rite-Kem, Inc

Contract Overview

Contract Amount: $6,637 ($6.6K)

Contractor: Rite-Kem, Inc.

Awarding Agency: General Services Administration

Start Date: 2026-04-02

End Date: 2026-04-09

Contract Duration: 7 days

Daily Burn Rate: $948/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: DETERGENT, LAUNDRY: SHALL BE A BUILT SYNTHETIC DETERGENT/BLEACH SUITABLE FOR LAUNDERING COTTON,SYNTHETIC, AND BLENDED FABRICS IN FRESH OR SEA WATER. FORTY (40) POUND CONTAINER.

Place of Performance

Location: TUPELO, LEE County, MISSISSIPPI, 38801

State: Mississippi Government Spending

Plain-Language Summary

General Services Administration obligated $6,636.6 to RITE-KEM, INC. for work described as: DETERGENT, LAUNDRY: SHALL BE A BUILT SYNTHETIC DETERGENT/BLEACH SUITABLE FOR LAUNDERING COTTON,SYNTHETIC, AND BLENDED FABRICS IN FRESH OR SEA WATER. FORTY (40) POUND CONTAINER. Key points: 1. Value for money appears fair given the unit price for specialized detergent. 2. Competition dynamics indicate a sole-source award, potentially limiting price discovery. 3. Risk indicators are low due to the short duration and standard product. 4. Performance context shows a rapid fulfillment requirement for essential supplies. 5. Sector positioning is within the broader office supplies and cleaning materials market.

Value Assessment

Rating: fair

The contract value of $6,636 for 40-pound containers of laundry detergent suggests a unit price of approximately $165.92 per container. This price needs to be benchmarked against similar bulk detergent purchases, considering the specific formulation (synthetic detergent/bleach) and suitability for various fabric types and water conditions. Without direct comparable contracts for this exact product, a precise value assessment is difficult, but it appears within a reasonable range for specialized cleaning agents.

Cost Per Unit: Approximately $165.92 per 40-lb container.

Competition Analysis

Competition Level: sole-source

This contract was not competed under the Simplified Acquisition Procedures (SAP), indicating it was likely awarded on a sole-source basis or through a limited competition not detailed here. The absence of a competitive process means that multiple vendors were not solicited, which can impact the government's ability to secure the lowest possible price.

Taxpayer Impact: A sole-source award means taxpayers may not have benefited from the competitive pricing that could have been achieved through an open bidding process.

Public Impact

Federal agencies requiring specialized laundry detergent will benefit from this supply. The service delivered is the provision of 40-pound containers of synthetic detergent/bleach. The geographic impact is likely limited to the locations served by the General Services Administration's Federal Acquisition Service. Workforce implications are minimal, primarily affecting procurement and logistics personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to higher prices than market rate.
Limited details on product specifications beyond general suitability.

Positive Signals

Product meets specified requirements for laundering various fabrics.
Awarded to a known entity, potentially ensuring reliable supply.
Short contract duration minimizes long-term price risk.

Sector Analysis

This contract falls within the broader chemical manufacturing and office supplies sector. The market for industrial cleaning agents and detergents is diverse, with numerous manufacturers. The General Services Administration (GSA) plays a significant role in procuring such supplies for federal agencies, often leveraging bulk purchasing power. Benchmarking this specific purchase against broader industrial cleaning supply contracts would provide further context on pricing.

Small Business Impact

There is no indication that this contract involved a small business set-aside. Given the nature of the product and the likely sole-source award, subcontracting opportunities for small businesses are improbable. The impact on the small business ecosystem is therefore negligible for this specific procurement.

Oversight & Accountability

Oversight for this purchase would fall under the General Services Administration's Federal Acquisition Service. Standard procurement regulations and policies govern the award and execution of this purchase order. Transparency is limited due to the sole-source nature of the award, with no public justification readily available.

Related Government Programs

Federal Supply Schedule (FSS) contracts for cleaning and facility maintenance supplies
General Services Administration (GSA) procurement vehicles
Department of Defense (DoD) laundry and cleaning supply contracts

Risk Flags

Sole-source award may limit price competition.
Limited public information on justification for sole-source award.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $6,636.6 to RITE-KEM, INC.. DETERGENT, LAUNDRY: SHALL BE A BUILT SYNTHETIC DETERGENT/BLEACH SUITABLE FOR LAUNDERING COTTON,SYNTHETIC, AND BLENDED FABRICS IN FRESH OR SEA WATER. FORTY (40) POUND CONTAINER.

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 $6,636.6.

What is the period of performance?

Start: 2026-04-02. End: 2026-04-09.

What is the track record of Rite-Kem, Inc. in supplying federal agencies?

Rite-Kem, Inc. has a history of supplying various products to the federal government. While specific details on their track record for laundry detergents are not provided in this data, their presence as a supplier suggests they are a recognized entity within the federal procurement landscape. Further investigation into their past performance ratings, delivery history, and any past issues or commendations related to similar contracts would offer a more comprehensive view of their reliability and quality of service. Analyzing their contract history across different agencies and contract types can reveal patterns in their performance and adherence to federal acquisition regulations.

How does the price per pound of this detergent compare to commercial bulk pricing?

The price per pound for this 40-lb container of laundry detergent is approximately $4.15 ($165.92 / 40 lbs). To compare this to commercial bulk pricing, one would need to research current market rates for industrial-strength synthetic detergents with bleach suitable for commercial laundries. Factors such as volume discounts, specific chemical formulations, and brand reputation significantly influence commercial pricing. If Rite-Kem, Inc. is a specialized manufacturer, their price might reflect unique product attributes. However, if it's a standard formulation, this price could be higher than what might be found through competitive bidding among multiple commercial suppliers.

What are the specific risks associated with a sole-source award for cleaning supplies?

The primary risk associated with a sole-source award for cleaning supplies is the potential for inflated pricing due to the lack of competition. Without multiple bids, the government may pay more than necessary. Additionally, sole-source awards can limit the government's access to innovative or more cost-effective products from other manufacturers. There's also a risk of vendor lock-in, where the agency becomes dependent on a single supplier, potentially reducing leverage in future negotiations. Ensuring the awarded vendor can consistently meet quality and delivery standards becomes critical, as there are fewer alternatives if issues arise.

What is the typical duration for similar GSA purchase orders for cleaning supplies?

The typical duration for GSA purchase orders for cleaning supplies can vary significantly based on the specific product, agency needs, and contract type. For consumable items like detergents, purchase orders are often short-term, reflecting immediate needs or covering a specific period, such as the 7-day duration seen here for delivery. Longer-term requirements might be met through established GSA Schedules with longer contract periods or by issuing multiple purchase orders over time. The 7-day duration for this specific order suggests an urgent or immediate need for the supplies, which is common for operational necessities.

Are there any historical spending patterns for this specific type of detergent under GSA?

Historical spending patterns for this specific type of laundry detergent under GSA would require access to detailed procurement databases that track spending by product classification (like NAICS code 339940 for Office Supplies Manufacturing, though detergent is a chemical product) and vendor. Without such data, it's difficult to establish trends. However, GSA generally procures a wide range of cleaning and maintenance supplies. Analyzing past GSA solicitations and awards for similar bulk detergents could reveal if Rite-Kem, Inc. is a frequent supplier, the typical quantities purchased, and the price ranges observed over time. This would help contextualize the current award's value and necessity.

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: $6,637

Exercised Options: $6,637

Current Obligation: $6,637

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Timeline