GSA awards $2,934 for HP toner, highlighting potential for price optimization in office supplies

Contract Overview

Contract Amount: $2,934 ($2.9K)

Contractor: Premier & Companies, Inc.

Awarding Agency: General Services Administration

Start Date: 2026-04-02

End Date: 2026-04-04

Contract Duration: 2 days

Daily Burn Rate: $1.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 999

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT

Sector: Other

Official Description: W2120A HP 212A, (W2120A) BLACK ORIGINAL LASERJET TONER CARTRIDGE

Place of Performance

Location: NEW YORK, NEW YORK County, NEW YORK, 10018

State: New York Government Spending

Plain-Language Summary

General Services Administration obligated $2,934 to PREMIER & COMPANIES, INC. for work described as: W2120A HP 212A, (W2120A) BLACK ORIGINAL LASERJET TONER CARTRIDGE Key points: 1. The contract value of $2,934 for a single toner cartridge suggests a high unit price, warranting further investigation into market rates. 2. Full and open competition was utilized, indicating a potentially competitive bidding process that should theoretically drive favorable pricing. 3. The fixed-price contract with economic price adjustment introduces a risk of cost escalation over the contract term. 4. The short duration of the delivery order (April 2-4, 2026) suggests a tactical procurement rather than a long-term strategic supply agreement. 5. The product code NAICS 322230 points to stationery product manufacturing, placing this procurement within a broader industrial context. 6. The awarding agency, GSA, is responsible for managing significant federal procurement, making this a standard but important transaction.

Value Assessment

Rating: questionable

The awarded price of $2,934 for a single HP 212A black original LaserJet toner cartridge appears exceptionally high when compared to typical market prices for similar office supplies. Standard retail or even bulk government pricing for such items usually falls within a much lower range. This significant deviation suggests potential overpayment or a misunderstanding of the specific product variant or quantity. Further benchmarking against other GSA schedules or similar agency contracts for toner cartridges is recommended to ascertain true value for money.

Cost Per Unit: $2,934 per unit

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit bids. While the competition level is ideal, the high unit price raises questions about the effectiveness of the competition in achieving optimal price discovery for this specific item. It is unclear how many bids were received, but the outcome suggests that either the market for this particular toner cartridge is limited, or the bidding process did not adequately incentivize lower pricing.

Taxpayer Impact: Taxpayers may not have received the best possible price due to the high unit cost, despite the contract being competed openly. This could indicate inefficiencies in the bidding process or a lack of competitive pressure for this specific supply.

Public Impact

Federal agencies utilizing HP LaserJet printers will receive the necessary toner to maintain printing operations. The primary beneficiaries are government offices that rely on consistent printing capabilities for administrative and operational tasks. The geographic impact is localized to the delivery location in New York (ST: NY, SN: NEW YORK). Workforce implications are minimal, primarily affecting administrative staff who manage office supplies and printing.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

High unit cost for a common office supply item.
Potential for price escalation due to economic price adjustment clause.
Lack of clarity on the number of bidders and competitive intensity.
Short delivery order duration may indicate a reactive procurement rather than strategic planning.

Positive Signals

Procurement conducted under full and open competition, adhering to best practices.
Awarded by the General Services Administration, a key federal procurement body.
Clear identification of the specific product (HP 212A toner cartridge).

Sector Analysis

This contract falls within the broader office supplies and equipment sector, specifically focusing on printer consumables. The market for printer toner is substantial, driven by the widespread use of laser printers in both government and commercial sectors. While large manufacturers like HP dominate, there is also a market for compatible and remanufactured cartridges. Government agencies often procure these supplies through GSA schedules, which aim to provide competitive pricing through pre-negotiated contracts. However, the price point here suggests this specific item might be a niche product or subject to unique market dynamics.

Small Business Impact

There is no indication that this contract involved small business set-asides, as the 'ss' field is false. Similarly, the 'sb' field is false, suggesting no explicit small business participation goals or subcontracting requirements were noted in the provided data. This procurement appears to be focused on direct fulfillment rather than leveraging the small business ecosystem.

Oversight & Accountability

The General Services Administration (GSA) oversees this contract, which is a delivery order under a larger indefinite delivery, indefinite quantity (IDIQ) contract. Oversight mechanisms would typically involve GSA's Federal Acquisition Service, contract officers, and potentially agency-level review. Transparency is facilitated through contract databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected within the GSA or the contracting process.

Related Government Programs

GSA Schedules Program
Office Supplies Procurement
Printer Consumables
Federal Acquisition Service Contracts

Risk Flags

High Unit Cost
Potential Overpayment
Economic Price Adjustment Risk
Unclear Competition Effectiveness

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $2,934 to PREMIER & COMPANIES, INC.. W2120A HP 212A, (W2120A) BLACK ORIGINAL LASERJET TONER CARTRIDGE

Who is the contractor on this award?

The obligated recipient is PREMIER & COMPANIES, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $2,934.

What is the period of performance?

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

What is the typical market price for an HP 212A black original LaserJet toner cartridge, and how does the awarded price compare?

A standard HP 212A black original LaserJet toner cartridge typically retails between $100 and $150 USD, depending on the vendor and any applicable discounts. Bulk government purchasing through GSA schedules or other contract vehicles might secure even lower prices, potentially in the $80-$120 range. The awarded price of $2,934 is therefore an extreme outlier, representing a potential overpayment of over 2000% compared to common market rates. This discrepancy warrants a thorough investigation into whether the awarded amount reflects a bulk purchase not detailed in the summary, a highly specialized variant, or a significant pricing error.

How many bids were received for this contract, and what does this indicate about the competition level?

The provided data indicates the contract was awarded under 'FULL AND OPEN COMPETITION,' which theoretically allows any responsible source to bid. However, the specific number of bids received is not detailed in the summary data. A high unit price, especially for a common item like toner, despite open competition, could suggest several possibilities: 1) The specific product variant is niche, limiting the number of qualified bidders. 2) The bidding process did not generate sufficient competitive pressure, perhaps due to the solicitation's structure or the perceived market dynamics by potential bidders. 3) The awarded contractor may have had a unique advantage or pricing strategy. Without the number of bids, it's difficult to definitively assess the 'effectiveness' of the competition in driving down costs.

What are the risks associated with the 'FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT' contract type for this toner cartridge?

The 'FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT' (FPEPA) contract type introduces a risk of cost escalation for the government. While the base price is fixed, the economic price adjustment (EPA) clause allows the contractor to request an increase in the contract price based on fluctuations in specified economic factors, such as inflation or changes in raw material costs. For a relatively low-value, short-duration item like a toner cartridge, the impact of EPA might be minimal. However, if this delivery order is part of a larger, longer-term requirement, the EPA could lead to unpredictable cost increases over time, potentially exceeding initial budget estimates and reducing the overall value for money.

What is the significance of the 'PREMIER & COMPANIES, INC.' as the awardee in the context of federal contracting?

Premier & Companies, Inc. is listed as the awardee. Without further background on the company's size, specialization, or past performance within federal contracting, it's challenging to draw definitive conclusions. However, their ability to win a contract, even with a questionable price point, indicates they are registered and capable of participating in federal procurement processes. Further analysis would involve examining their contract history, including the types of goods and services they typically provide, their performance ratings, and whether they are a small or large business. This context is crucial for understanding their role and potential impact on the supply chain.

How does this specific procurement fit into the broader spending patterns for office supplies within the General Services Administration?

The General Services Administration (GSA) manages a vast portfolio of contracts for office supplies, aiming to provide agencies with efficient and cost-effective solutions. Spending on items like toner cartridges is a significant component of this category. Typically, GSA leverages large-volume purchasing and competitive bidding through its Schedules program to achieve economies of scale. A single delivery order for $2,934 for one toner cartridge, if accurate, would be an anomaly compared to the aggregated spending data usually seen for such items. It might represent a specialized requirement, an emergency purchase, or potentially an error in data reporting or interpretation. Analyzing trends in GSA's overall office supply spending would reveal if this is an isolated incident or indicative of a broader issue.

Industry Classification

NAICS: Manufacturing › Converted Paper Product Manufacturing › Stationery Product Manufacturing

Product/Service Code: OFFICE SUPPLIES AND DEVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 47QSMD20R0001

Offers Received: 999

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

Evaluated Preference: NONE

Contractor Details

Address: 525 WINDSOR DR, SECAUCUS, NJ, 07094

Business Categories: Category Business, Partnership or Limited Liability Partnership, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $2,934

Exercised Options: $2,934

Current Obligation: $2,934

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47QSEA20D0043

IDV Type: FSS

Timeline