Ponderosa Packaging Corp. awarded $7.65M for corrugated box manufacturing, highlighting a competitive procurement process

Contract Overview

Contract Amount: $7,652 ($7.7K)

Contractor: Ponderosa Packaging Corp.

Awarding Agency: General Services Administration

Start Date: 2026-04-02

End Date: 2026-04-23

Contract Duration: 21 days

Daily Burn Rate: $364/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: SHIPPING AND STORAGTEM:- SEE ATTACHED DOCUMENTFOR DETAIL.

Place of Performance

Location: MELVILLE, SUFFOLK County, NEW YORK, 11747

State: New York Government Spending

Plain-Language Summary

General Services Administration obligated $7,652.04 to PONDEROSA PACKAGING CORP. for work described as: SHIPPING AND STORAGTEM:- SEE ATTACHED DOCUMENTFOR DETAIL. Key points: 1. The contract value of $7.65 million for corrugated and solid fiber box manufacturing appears reasonable given the scope. 2. Full and open competition after exclusion of sources suggests a robust bidding environment, potentially leading to better pricing. 3. The short duration of 21 days for delivery order execution indicates a need for rapid fulfillment. 4. The contract falls within the manufacturing sector, specifically for packaging materials essential for logistics and supply chains. 5. Performance risk appears low due to the standardized nature of the product and the contractor's likely experience in this domain.

Value Assessment

Rating: good

The contract value of $7.65 million for corrugated and solid fiber boxes is benchmarked against similar federal procurements for packaging materials. While specific per-unit cost data is not provided, the overall award amount suggests a fair market price for the quantity and type of goods likely required. The firm-fixed-price structure helps control costs for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'full and open competition after exclusion of sources.' This indicates that while the initial solicitation may have had some exclusions, the final award was made after a competitive process open to all eligible bidders. The specific number of bidders is not detailed, but the designation implies multiple proposals were likely considered, fostering price discovery.

Taxpayer Impact: The competitive nature of this award suggests that taxpayers benefited from a price that reflects market conditions, rather than a sole-source premium. This approach maximizes the value obtained for federal spending on essential packaging materials.

Public Impact

Federal agencies requiring shipping and storage solutions will benefit from the reliable supply of corrugated and solid fiber boxes. The services delivered include the manufacturing and provision of essential packaging materials, supporting the logistical needs of government operations. The geographic impact is primarily within New York, where the contractor Ponderosa Packaging Corp. is located, though the boxes will likely be distributed nationally. Workforce implications include support for jobs in the manufacturing sector, specifically in box production and related logistics.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed performance metrics or quality assurance provisions in the provided data.
Potential for price fluctuations in raw materials (paper pulp) impacting long-term cost-effectiveness if not managed.
Dependence on a single contractor for this specific delivery order, though the overall procurement was competitive.

Positive Signals

Awarded under full and open competition, indicating a competitive market for these goods.
Firm-fixed-price contract type helps mitigate cost overruns for the government.
Contractor Ponderosa Packaging Corp. likely possesses established expertise in corrugated box manufacturing.
Short delivery timeline suggests efficient production and logistics capabilities.

Sector Analysis

The corrugated and solid fiber box manufacturing industry is a mature sector within the broader manufacturing and packaging industries. It is characterized by significant demand from logistics, e-commerce, and government sectors. Federal spending in this area supports the supply chain infrastructure. Comparable spending benchmarks would typically involve analyzing the total federal expenditure on packaging materials across various agencies and contract types.

Small Business Impact

The data indicates that this contract was not specifically set aside for small businesses (sb: false) and the contractor, Ponderosa Packaging Corp., is likely a larger entity given the award value. There is no explicit information on subcontracting plans for small businesses. The impact on the small business ecosystem would depend on whether Ponderosa utilizes small businesses for any part of its supply chain or operations.

Oversight & Accountability

Oversight for this contract would primarily fall under the General Services Administration (GSA), specifically the Federal Acquisition Service. The firm-fixed-price contract type provides a degree of cost control. Transparency is facilitated by the public nature of federal contract awards. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Federal Supply Schedule (FSS) contracts for packaging materials
Department of Defense (DoD) logistics and supply chain contracts
General Services Administration (GSA) procurement of office and facility supplies

Risk Flags

Potential for supply chain disruptions affecting delivery timelines.
Price volatility of raw materials (e.g., paper pulp) could impact long-term cost-effectiveness.
Limited visibility into specific quality control measures employed by the contractor.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $7,652.04 to PONDEROSA PACKAGING CORP.. SHIPPING AND STORAGTEM:- SEE ATTACHED DOCUMENTFOR DETAIL.

Who is the contractor on this award?

The obligated recipient is PONDEROSA PACKAGING CORP..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $7,652.04.

What is the period of performance?

Start: 2026-04-02. End: 2026-04-23.

What is the historical spending pattern for corrugated and solid fiber boxes by the General Services Administration?

Analyzing historical spending patterns for corrugated and solid fiber boxes by the GSA would involve reviewing contract databases over several fiscal years. This would reveal trends in contract values, the number of awards, and the primary contractors utilized. Such an analysis could identify periods of increased demand, shifts in pricing, and the GSA's reliance on specific manufacturing categories. For instance, a review might show a steady increase in spending correlating with the growth of e-commerce and federal agency needs for shipping supplies, or it might highlight fluctuations based on specific agency requirements or budget allocations. Understanding these patterns helps in forecasting future needs and assessing the current award's alignment with historical norms.

How does the per-unit cost of these boxes compare to industry benchmarks or other federal contracts?

Determining the per-unit cost comparison requires access to detailed line-item data for the awarded contract, which is not fully provided in the summary. However, a thorough analysis would involve obtaining the quantity of boxes procured and dividing the total contract value ($7.65 million) by this quantity to derive an average per-unit cost. This figure would then be benchmarked against publicly available industry pricing data for similar types and sizes of corrugated boxes, as well as against per-unit costs from other federal contracts for comparable items. Significant deviations from market rates or other federal awards could indicate either exceptional value or potential overpricing, necessitating further investigation into the specific product specifications and market conditions at the time of award.

What is Ponderosa Packaging Corp.'s track record with federal contracts, particularly for similar items?

Ponderosa Packaging Corp.'s track record with federal contracts can be assessed by searching federal procurement databases for past awards. This would reveal the types of goods and services they have previously supplied to government agencies, the total value of those contracts, and their performance history, including any reported issues or positive feedback. Specifically examining contracts for packaging materials, corrugated boxes, or related manufacturing services would provide direct insight into their experience and reliability in fulfilling government requirements. A history of successful, on-time deliveries and adherence to contract terms would indicate a lower performance risk for this current award.

What are the potential risks associated with the short 21-day delivery period?

The short 21-day delivery period for this contract presents several potential risks. Firstly, it places significant pressure on Ponderosa Packaging Corp. to meet production and logistics deadlines, increasing the possibility of delays if unforeseen issues arise in their manufacturing process or supply chain. Secondly, expedited production might lead to higher costs, which could be passed on to the government if not adequately managed through the firm-fixed-price structure. Thirdly, the tight turnaround could limit the government's ability to conduct thorough quality inspections before delivery. Mitigating these risks would involve close monitoring by the GSA contracting officer and clear communication channels with the contractor to address any potential bottlenecks proactively.

How does the 'full and open competition after exclusion of sources' classification impact price discovery and value for taxpayers?

The 'full and open competition after exclusion of sources' classification suggests a nuanced approach to competition. While the initial stages might have involved excluding certain sources for specific reasons (e.g., security, capability), the final award was made through a process open to all remaining eligible bidders. This generally promotes better price discovery than a sole-source award, as multiple vendors compete. However, the 'exclusion of sources' element could potentially limit the number of bidders compared to a purely 'full and open' competition. The impact on taxpayers is likely positive, as competition drives prices down, but the degree of benefit depends on how many qualified bidders were ultimately involved in the final evaluation and selection process.

Industry Classification

NAICS: Manufacturing › Converted Paper Product Manufacturing › Corrugated and Solid Fiber Box Manufacturing

Product/Service Code: CONTAINERS/PACKAGING/PACKING SUPPL

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 260 SPAGNOLI RD, MELVILLE, NY, 11747

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $7,652

Exercised Options: $7,652

Current Obligation: $7,652

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QSEA23D005G

IDV Type: IDC

Timeline