GSA awards $5.99M contract for cotton bags, highlighting potential for price adjustments

Contract Overview

Contract Amount: $5,998 ($6.0K)

Contractor: National Industries for the Blind

Awarding Agency: General Services Administration

Start Date: 2026-04-07

End Date: 2026-04-14

Contract Duration: 7 days

Daily Burn Rate: $857/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT

Sector: Other

Official Description: BAG, COTTON, MAILING:

Place of Performance

Location: EARTH CITY, SAINT LOUIS County, MISSOURI, 63045

State: Missouri Government Spending

Plain-Language Summary

General Services Administration obligated $5,998 to NATIONAL INDUSTRIES FOR THE BLIND for work described as: BAG, COTTON, MAILING: Key points: 1. Contract value appears reasonable given the duration and product type. 2. Limited competition suggests potential for higher pricing than a fully competed contract. 3. Economic price adjustment clause introduces potential for cost increases over the contract term. 4. Contract duration is short, limiting long-term price exposure. 5. National Industries for the Blind is a key supplier in this niche. 6. The contract falls under office supplies and stationery, a common federal procurement category.

Value Assessment

Rating: fair

The contract value of $5.99 million over 7 days for cotton bags is difficult to benchmark without more specific product details and market data. The fixed-price with economic price adjustment (EPA) structure introduces uncertainty. While the base price might be competitive, the EPA could lead to significant cost overruns if material costs rise substantially. Compared to similar bulk supply contracts, the per-diem cost seems high, but this is heavily dependent on the quantity and specifications of the bags.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning there was no open competition. This is often done when a specific contractor is uniquely qualified or when there are other specific justifications for not competing. The lack of competition means that the government did not benefit from a range of offers, which could have driven down prices. It is unclear from the provided data why this contract was not competed.

Taxpayer Impact: Sole-source awards limit the government's ability to secure the best possible price through competitive bidding, potentially leading to higher costs for taxpayers.

Public Impact

The primary beneficiary is the contractor, National Industries for the Blind, which provides employment opportunities for individuals who are blind. The contract delivers essential cotton bags, likely for mailing or packaging purposes, supporting various federal agency operations. The geographic impact is primarily in Missouri, where the contractor is located. The contract supports jobs within the disability employment sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to suboptimal pricing.
Economic price adjustment clause introduces cost uncertainty.
Short contract duration may indicate a need for more stable, long-term solutions.

Positive Signals

Supports a mission-driven organization providing employment for the blind.
Addresses a specific need for essential supplies.
Contract is relatively small in the context of overall federal spending.

Sector Analysis

This contract falls within the broader 'Office Supplies and Stationery Stores' (NAICS 453210) sector. This sector encompasses a wide range of products used by federal agencies for administrative and operational purposes. Federal spending in this category is substantial, with agencies procuring everything from paper and pens to specialized packaging materials. The market is generally competitive, but specific items or specialized suppliers, like those serving the mission of National Industries for the Blind, may operate under different procurement dynamics.

Small Business Impact

The data indicates this contract was not awarded to a small business (sb: false) and does not appear to be a small business set-aside. Therefore, there are no direct subcontracting implications for small businesses stemming from this specific award. The primary impact is on the large, mission-oriented contractor.

Oversight & Accountability

Oversight for this contract would typically fall under the General Services Administration (GSA), specifically the Federal Acquisition Service. GSA has established procurement regulations and oversight mechanisms to ensure contract compliance. Transparency is generally maintained through contract databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Federal Mailing Supplies
Office and Administrative Supplies
Procurement for Disabled Individuals
General Services Administration Contracts

Risk Flags

Sole-source award without clear justification.
Potential for cost escalation due to EPA clause.
Lack of detailed product specifications for value assessment.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $5,998 to NATIONAL INDUSTRIES FOR THE BLIND. BAG, COTTON, MAILING:

Who is the contractor on this award?

The obligated recipient is NATIONAL INDUSTRIES FOR THE BLIND.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $5,998.

What is the period of performance?

Start: 2026-04-07. End: 2026-04-14.

What specific type of cotton bags are being procured, and what are their intended uses?

The provided data does not specify the exact type or intended use of the cotton bags beyond the general NAICS code for 'Office Supplies and Stationery Stores'. These could range from simple drawstring bags for small items to more robust tote bags for carrying documents or equipment. The lack of detail makes it difficult to assess the value proposition or compare pricing accurately. Further information would be needed from the contract award documents to understand the specifications and intended application, which would clarify the necessity of a sole-source award and the appropriateness of the price.

What is the justification for the sole-source award, and why was competition not feasible?

The data states the contract was 'NOT AVAILABLE FOR COMPETITION', indicating a sole-source award. Typically, sole-source awards are justified under specific circumstances outlined in the Federal Acquisition Regulation (FAR), such as when only one responsible source can provide the supplies or services, or in cases of urgent and compelling need. Without further details on the specific justification cited by GSA, it's impossible to determine if competition was truly not feasible or if alternative procurement strategies could have been employed. This lack of transparency in the justification process raises concerns about potential missed opportunities for better pricing.

How does the economic price adjustment (EPA) clause work, and what are the potential cost implications?

An Economic Price Adjustment (EPA) clause allows for an increase or decrease in the contract price based on specified economic factors, such as changes in the cost of raw materials, labor, or other economic indices. For this contract, the EPA likely relates to the cost of cotton or manufacturing. While intended to protect contractors from unforeseen cost increases, it introduces significant price uncertainty for the government. The potential cost implications depend entirely on market fluctuations for the inputs. If the cost of cotton or related manufacturing inputs rises significantly during the contract period, the final cost to the government could exceed the initial $5.99 million estimate.

What is the historical spending pattern for similar cotton bag procurements by the GSA?

The provided data does not include historical spending patterns for similar cotton bag procurements. To assess this contract's value effectively, it would be beneficial to analyze past GSA awards for comparable items, noting quantities, specifications, contract types, and pricing. Understanding historical trends would help determine if the current award represents an increase or decrease in cost and whether the sole-source nature is a deviation from previous practices. Without this context, it's challenging to evaluate the long-term value and efficiency of this procurement.

What is the track record of National Industries for the Blind in fulfilling federal contracts of this nature?

National Industries for the Blind (NIB) is a recognized AbilityOne participating nonprofit agency that provides employment for people who are blind. They have a long history of fulfilling federal contracts, particularly for items manufactured by their associated agencies. While NIB itself is the contracting entity, the actual manufacturing is done by affiliated agencies. Their track record is generally considered positive in terms of fulfilling their social mission and delivering products. However, specific performance metrics related to timeliness, quality, and cost-competitiveness for contracts of this exact nature would require a deeper dive into past performance reviews and contract histories.

Industry Classification

NAICS: Retail Trade › Office Supplies, Stationery, and Gift Stores › Office Supplies and Stationery Stores

Product/Service Code: OFFICE SUPPLIES AND DEVICES

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

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

Evaluated Preference: NONE

Contractor Details

Address: 3000 POTOMAC AVE, ALEXANDRIA, VA, 22305

Business Categories: AbilityOne Program Participant, Category Business, Corporate Entity Tax Exempt, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $5,998

Exercised Options: $5,998

Current Obligation: $5,998

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS02FW0003

IDV Type: IDC

Timeline