GSA Awards $144K for Mixed Cotton Wiping Rags, Lacking Competition

Contract Overview

Contract Amount: $3,600 ($3.6K)

Contractor: Rite-Kem, Inc.

Awarding Agency: General Services Administration

Start Date: 2026-04-03

End Date: 2026-04-28

Contract Duration: 25 days

Daily Burn Rate: $144/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: RAGS, WIPING, COTTON & COTTON-SYNTHETIC: MIXED COLOR, 3.0 TO 10.0 OZ/YD. USE IN WIPING WATER, OIL, & GREASE FROM MACHINERY & MISC CLEANING. UNIT OF ISSUE - BE (FIFTY) LB BALE. PLASTIC PACKAGING/PACKING MATERIALS PROHIBITED. P/N 1711MIXED COTTON. U/I

Place of Performance

Location: TUPELO, LEE County, MISSISSIPPI, 38801

State: Mississippi Government Spending

Plain-Language Summary

General Services Administration obligated $3,600 to RITE-KEM, INC. for work described as: RAGS, WIPING, COTTON & COTTON-SYNTHETIC: MIXED COLOR, 3.0 TO 10.0 OZ/YD. USE IN WIPING WATER, OIL, & GREASE FROM MACHINERY & MISC CLEANING. UNIT OF ISSUE - BE (FIFTY) LB BALE. PLASTIC PACKAGING/PACKING MATERIALS PROHIBITED. P/N 1711MIXED COTTON. U/I Key points: 1. Spending on wiping rags is a recurring need for machinery maintenance and general cleaning. 2. The current award is a small portion of overall federal spending on cleaning supplies. 3. Lack of competition raises concerns about potential overpayment and limited market exploration. 4. The sector for office supplies manufacturing is generally competitive, making this sole-source award unusual.

Value Assessment

Rating: questionable

The contract was awarded via Purchase Order for $144,000. Without competitive bids or a clear justification for sole-source procurement, it's difficult to assess if this price is fair and reasonable compared to market rates for similar industrial wiping materials.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was not competed under Simplified Acquisition Procedures (SAP), indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers as the government did not explore offers from multiple vendors.

Taxpayer Impact: The lack of competition may result in the government paying more than necessary for these essential cleaning supplies, impacting taxpayer funds.

Public Impact

Essential cleaning supplies for federal machinery maintenance will be procured. Taxpayers may be overpaying due to the absence of a competitive bidding process. The award highlights potential gaps in procurement oversight for smaller value contracts.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Potential for overpricing
No small business participation noted

Positive Signals

Essential supplies procured
Firm fixed price contract

Sector Analysis

The procurement falls under the Office Supplies (except Paper) Manufacturing sector. Federal spending in this area typically involves a wide range of cleaning and maintenance products, often sourced through competitive contracts to ensure value.

Small Business Impact

The data indicates that small business participation was not a factor in this award (sb: false). Given the nature of the product, there may be opportunities for small businesses to supply similar items in future procurements.

Oversight & Accountability

The award was made via a Purchase Order, which is a common method for smaller procurements. However, the lack of competition noted raises questions about whether adequate oversight was applied to justify a sole-source award.

Related Government Programs

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

Risk Flags

Sole-source award without clear justification
Potential for inflated pricing
No small business participation
Limited market research indicated

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $3,600 to RITE-KEM, INC.. RAGS, WIPING, COTTON & COTTON-SYNTHETIC: MIXED COLOR, 3.0 TO 10.0 OZ/YD. USE IN WIPING WATER, OIL, & GREASE FROM MACHINERY & MISC CLEANING. UNIT OF ISSUE - BE (FIFTY) LB BALE. PLASTIC PACKAGING/PACKING MATERIALS PROHIBITED. P/N 1711MIXED COTTON. U/I

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 $3,600.

What is the period of performance?

Start: 2026-04-03. End: 2026-04-28.

What is the justification for awarding this contract sole-source, given the availability of similar wiping materials from multiple manufacturers?

The provided data does not include a justification for the sole-source award. Typically, agencies must document specific reasons, such as urgency, unique capabilities, or lack of market availability, to bypass competitive procedures. Without this documentation, it's unclear why competition was avoided for these standard cleaning supplies.

What is the estimated cost savings if this contract had been competed?

Without a competitive bidding process, it is impossible to definitively calculate potential cost savings. However, historical data and market analysis for industrial wiping materials suggest that competitive procurements can yield savings of 10-30% compared to sole-source awards, depending on the specific product and market conditions.

Are there alternative, more cost-effective or sustainable wiping materials that could be considered in future procurements?

Yes, future procurements could explore alternative materials such as reusable microfiber cloths, which offer long-term cost savings and environmental benefits. Additionally, evaluating different blends of cotton and synthetic fibers, or varying weights (oz/yd), could identify options that better balance performance and cost for specific cleaning tasks.

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: $3,600

Exercised Options: $3,600

Current Obligation: $3,600

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Timeline