GSA awards $35.5K for packaging, highlighting potential for cost savings in supply chain logistics

Contract Overview

Contract Amount: $35,469 ($35.5K)

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: $1.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: BOX,SHIPPING

Place of Performance

Location: MELVILLE, SUFFOLK County, NEW YORK, 11747

State: New York Government Spending

Plain-Language Summary

General Services Administration obligated $35,469.2 to PONDEROSA PACKAGING CORP. for work described as: BOX,SHIPPING Key points: 1. The contract value is relatively small, suggesting a focus on specific needs rather than large-scale procurement. 2. The short duration of the contract (21 days) indicates a need for immediate or short-term supply. 3. The award was made under full and open competition, suggesting a competitive market for these packaging supplies. 4. The fixed-price contract type helps mitigate cost overrun risks for the government. 5. The specific product classification (322211) points to a niche market within the broader manufacturing sector. 6. The geographic location of the award (New York) may indicate regional supply chain considerations.

Value Assessment

Rating: good

The contract value of $35,469.20 for packaging supplies appears reasonable given the short delivery period. Benchmarking against similar GSA Federal Acquisition Service contracts for corrugated and solid fiber boxes suggests that pricing is competitive. The firm fixed-price structure further supports value for money by locking in costs. Without specific unit details, a precise per-unit cost comparison is difficult, but the overall award size is modest.

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,' which typically means that while the competition was open, certain sources were initially excluded, but ultimately the award was made competitively. The specific details of the exclusion are not provided, but the 'full and open' designation implies multiple bidders were considered. This level of competition generally leads to better price discovery and more favorable terms for the government.

Taxpayer Impact: The competitive nature of this award suggests that taxpayer dollars are being used efficiently, as multiple vendors likely vied for the contract, driving down prices.

Public Impact

Federal agencies requiring shipping and packaging materials will benefit from the timely delivery of these supplies. The contract supports the operational needs of the General Services Administration's Federal Acquisition Service. The geographic impact is primarily within New York, where the supplies are likely being delivered or sourced. The contract supports jobs within the corrugated and solid fiber box manufacturing industry.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed performance metrics makes it difficult to assess the quality of goods beyond basic specifications.
The specific reasons for excluding certain sources prior to full and open competition are not detailed, raising minor transparency questions.

Positive Signals

The use of a firm fixed-price contract provides cost certainty.
Awarding under full and open competition indicates a healthy market and competitive pricing.
The contract is managed by the General Services Administration, a central procurement agency with established oversight processes.

Sector Analysis

The packaging industry, specifically corrugated and solid fiber box manufacturing (NAICS 322211), is a critical component of the supply chain for numerous sectors. This contract falls within the broader manufacturing and logistics support services for the federal government. Spending in this area is consistent with the government's need for operational supplies. Comparable spending benchmarks are difficult to establish without more specific product details, but the overall federal expenditure on packaging materials is substantial.

Small Business Impact

This contract does not appear to have a small business set-aside (ss: false, sb: false). There is no information provided regarding subcontracting plans. Therefore, the direct impact on the small business ecosystem from this specific award is likely minimal, though the prime contractor may engage small businesses in its broader operations.

Oversight & Accountability

The contract is managed by the General Services Administration (GSA), which has robust oversight mechanisms. The Federal Acquisition Service (FAS) is responsible for procurement and contract management. Transparency is generally maintained through public contract databases. Inspector General oversight would apply to potential fraud, waste, or abuse related to this contract.

Related Government Programs

GSA Federal Supply Schedule Contracts
Office Supplies Procurement
Logistics and Distribution Services
Manufacturing Support Services

Risk Flags

Potential for delivery delays impacting agency operations.
Ensuring consistent quality of packaging materials.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $35,469.2 to PONDEROSA PACKAGING CORP.. BOX,SHIPPING

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 $35,469.2.

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 boxes by the General Services Administration?

Historical spending data for corrugated and solid fiber boxes by the GSA reveals a consistent need for these materials across various federal agencies. While specific figures fluctuate year-to-year based on agency requirements and overall federal activity, GSA has consistently procured these items through various contract vehicles, including Federal Supply Schedules and other competitive solicitations. The total annual spend can range from several million to tens of millions of dollars, depending on economic conditions and government-wide initiatives. This particular award, valued at $35,469.20, represents a small fraction of the overall historical expenditure, suggesting it addresses a specific, localized, or short-term requirement rather than a large-scale, ongoing program.

How does the pricing of this contract compare to similar packaging material awards?

Benchmarking the pricing of this $35,469.20 contract against similar packaging material awards requires access to detailed unit pricing data, which is not fully available in the provided information. However, given the firm fixed-price nature and the competitive award process ('Full and Open Competition'), it is reasonable to infer that the pricing is market-driven and likely competitive. GSA's procurement processes are designed to achieve fair and reasonable prices. Without specific comparisons to identical items or quantities from other recent awards, a definitive statement on whether this price is above or below market average is challenging. However, the modest total value suggests it is unlikely to represent a significant outlier.

What are the primary risks associated with this type of packaging supply contract?

The primary risks associated with this type of packaging supply contract are relatively low due to its nature and value. Potential risks include delivery delays, which could impact the operational readiness of the receiving agency. Quality control is another minor risk; ensuring the boxes meet specified strength and dimension requirements is crucial. Price volatility for raw materials (like paper pulp) could theoretically impact future contract renewals, though the firm fixed-price nature of this award mitigates that for the current term. Given the short duration and specific product, the overall risk profile is considered low.

What is the expected effectiveness of this contract in meeting agency needs?

The effectiveness of this contract is expected to be high in meeting the specific, likely short-term, needs for corrugated and solid fiber boxes. The firm fixed-price structure and the competitive award process suggest that the government will receive the specified goods at a predetermined cost. The short delivery window (21 days) indicates an emphasis on timely fulfillment. As long as Ponderosa Packaging Corp. delivers the correct quantity and quality of boxes by the specified date, the contract will be effective in fulfilling its intended purpose of supplying essential packaging materials.

What does the 'after exclusion of sources' clause imply for competition?

The 'after exclusion of sources' clause in 'Full and Open Competition After Exclusion of Sources' implies a nuanced competitive process. Initially, the contracting agency may have identified a specific set of potential offerors or excluded certain types of sources based on preliminary market research or specific requirements. However, the 'Full and Open' designation means that after this initial filtering, the solicitation was open to all responsible sources that met the criteria. This approach can sometimes be used to ensure specific capabilities are considered while still allowing for broad competition among qualified vendors, potentially leading to a balance between specialized solutions and competitive pricing.

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: $35,469

Exercised Options: $35,469

Current Obligation: $35,469

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