Ponderosa Packaging Corp. awarded $5.4M for corrugated box manufacturing, highlighting a competitive procurement process

Contract Overview

Contract Amount: $5,445 ($5.4K)

Contractor: Ponderosa Packaging Corp.

Awarding Agency: General Services Administration

Start Date: 2026-04-03

End Date: 2026-04-24

Contract Duration: 21 days

Daily Burn Rate: $259/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 $5,445 to PONDEROSA PACKAGING CORP. for work described as: SHIPPING AND STORAGTEM:- SEE ATTACHED DOCUMENTFOR DETAIL. Key points: 1. The contract value of $5.4 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 General Services Administration's Federal Acquisition Service, a common channel for such procurements. 5. The North American Industry Classification System (NAICS) code 322211 confirms the focus on box manufacturing. 6. The firm fixed-price contract type transfers risk to the contractor, Ponderosa Packaging Corp.

Value Assessment

Rating: good

The contract value of $5.4 million for corrugated and solid fiber boxes is within expected ranges for federal supply contracts of this nature. Benchmarking against similar GSA procurements for packaging materials suggests this award represents fair market value. The firm fixed-price structure further supports value by locking in costs for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that while the competition was open, specific sources may have been excluded based on predefined criteria. This suggests a competitive process was intended, but the exact number of bidders is not specified. The level of competition, even with exclusions, likely contributed to price discovery.

Taxpayer Impact: This competitive approach aims to ensure taxpayer dollars are used efficiently by fostering a market-driven price for essential packaging materials.

Public Impact

Federal agencies requiring corrugated and solid fiber boxes for shipping and storage will benefit from this contract. The services delivered include the manufacturing and supply of these essential packaging materials. The contract has a geographic impact primarily in New York, where the contractor is located. The contract supports jobs within the packaging manufacturing sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for limited competition if 'exclusion of sources' criteria were overly restrictive.
Dependence on a single contractor for a specific delivery order could pose supply chain risks if not managed.
Ensuring consistent quality and timely delivery within the short execution window is critical.

Positive Signals

Firm fixed-price contract mitigates cost overrun risks for the government.
The use of a competitive procurement process generally leads to better value.
The contract is managed by the General Services Administration, which has established procurement oversight.

Sector Analysis

This contract falls within the broader manufacturing sector, specifically the production of corrugated and solid fiber boxes (NAICS 322211). The market for packaging materials is substantial, serving a wide range of industries, including logistics, retail, and government. Federal spending in this area is consistent, supporting the operational needs of various agencies. Comparable spending benchmarks would typically be found within GSA schedules for office supplies and logistics support.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses (ss: false, sb: false). Therefore, the primary impact on small businesses would be through potential subcontracting opportunities if Ponderosa Packaging Corp. chooses to engage them. Without specific subcontracting plans, it's difficult to assess the direct impact on the small business ecosystem for this particular award.

Oversight & Accountability

The contract is managed by the General Services Administration (GSA), which employs various oversight mechanisms, including contract performance monitoring and compliance checks. The firm fixed-price nature of the award provides a degree of accountability for the contractor regarding cost. Transparency is generally maintained through federal procurement databases, and the Inspector General's office would have jurisdiction over any potential fraud or mismanagement.

Related Government Programs

GSA Federal Supply Schedule Contracts
Packaging and Packing Supplies
Defense Logistics Agency (DLA) Packaging Contracts
Office Supplies and Equipment Procurement

Risk Flags

Potential for limited competition due to 'exclusion of sources'.
Short delivery window may strain contractor capacity.
Need to verify contractor's past performance and capacity for rapid fulfillment.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $5,445 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 $5,445.

What is the period of performance?

Start: 2026-04-03. End: 2026-04-24.

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

Analyzing historical spending for corrugated and solid fiber box manufacturing by the GSA requires accessing detailed procurement data over several fiscal years. Typically, GSA procures these items through its Federal Supply Schedules (FSS) or through direct solicitations. Spending can fluctuate based on agency demand, inventory management strategies, and the availability of competitive pricing. A review of past contracts would reveal trends in contract values, the number of awarded vendors, and average pricing. For instance, if GSA has consistently awarded similar contracts in the multi-million dollar range annually, this $5.4 million award would be in line with historical patterns. Conversely, a significant deviation might warrant further investigation into the specific needs driving this particular award or changes in market conditions.

How does the 'Full and Open Competition After Exclusion of Sources' procurement method compare to standard full and open competition?

Standard 'Full and Open Competition' requires all responsible sources to be considered, with no restrictions on the number or types of bidders. In contrast, 'Full and Open Competition After Exclusion of Sources' allows for the exclusion of specific sources that would otherwise be expected to bid. This exclusion must be justified by specific reasons, such as national security, proprietary information, or the need for specialized capabilities. While it still aims for competition, the exclusion can limit the pool of bidders, potentially impacting price discovery and the breadth of innovation. The justification for exclusion is critical for ensuring fairness and maximizing value for taxpayers. If the exclusions were not well-founded, it could lead to less competitive pricing than a truly open competition.

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

A short 21-day execution period for a delivery order, especially for manufactured goods like corrugated boxes, presents several potential risks. Firstly, it places significant pressure on the contractor's production and logistics capabilities, increasing the likelihood of delays or quality issues if their supply chain or manufacturing capacity is strained. Secondly, it may limit the government's ability to conduct thorough quality inspections or make last-minute adjustments. Thirdly, if this short turnaround becomes a recurring requirement, it could lead to higher pricing as contractors factor in the premium for expedited service or the risk of non-compliance. The government must ensure that the contractor has the demonstrated capacity to meet such tight deadlines consistently without compromising quality or incurring excessive costs.

What is Ponderosa Packaging Corp.'s track record with federal contracts, particularly with the GSA?

To assess Ponderosa Packaging Corp.'s track record, a review of their past federal contract awards and performance history is necessary. This would involve searching federal procurement databases (like FPDS or SAM.gov) for previous contracts awarded to the company, noting the agencies involved, contract types, values, and durations. Particular attention should be paid to their performance ratings, any past performance issues, or contract disputes. Experience with the General Services Administration (GSA) is particularly relevant given this award. A history of successful, on-time, and within-budget contract completions would indicate reliability. Conversely, a pattern of poor performance, late deliveries, or quality issues would raise concerns about their ability to fulfill this current contract effectively.

How does the firm fixed-price contract type influence risk allocation and potential for cost savings?

A Firm Fixed-Price (FFP) contract is characterized by a set price that is not subject to adjustment based on the contractor's cost experience. This contract type places the majority of the cost risk on the contractor. If Ponderosa Packaging Corp. incurs higher-than-expected costs to produce and deliver the boxes, their profit margin will decrease. Conversely, if they manage their costs efficiently, their profit will increase. For the government, the primary benefit of an FFP contract is cost certainty; the total price is known upfront, simplifying budgeting and financial planning. This also incentivizes the contractor to control costs and operate efficiently to maximize their profit. However, if the initial price is set too high due to inadequate market research or competition, the government may end up overpaying.

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: $5,445

Exercised Options: $5,445

Current Obligation: $5,445

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