Ponderosa Packaging Corp. awarded $5.4M contract for corrugated boxes by GSA, highlighting manufacturing sector activity

Contract Overview

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

Contractor: Ponderosa Packaging Corp.

Awarding Agency: General Services Administration

Start Date: 2026-04-07

End Date: 2026-04-28

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. Contract value of $5.4 million for packaging materials indicates significant demand within federal supply chains. 2. The award to Ponderosa Packaging Corp. suggests a competitive landscape for corrugated box manufacturing. 3. A short performance period of 21 days may indicate a need for rapid fulfillment or a specific project requirement. 4. The contract's focus on box manufacturing places it within a key segment of the industrial and commercial goods sector. 5. Fixed-price contract type offers cost certainty for the government, mitigating risk of cost overruns. 6. The exclusion of sources in the competition method warrants further investigation into the rationale.

Value Assessment

Rating: good

The contract value of $5.4 million for corrugated and solid fiber boxes appears reasonable given the quantity and type of goods typically procured by federal agencies. Benchmarking against similar GSA contracts for packaging materials would provide a more precise value-for-money assessment. The firm fixed-price structure helps control costs, but without detailed line-item pricing, a granular comparison is challenging. The short duration suggests a focused need, potentially impacting the overall cost-effectiveness if this is a recurring requirement.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This indicates that while the competition was intended to be open, specific sources were excluded. The exact number of bidders and the reasons for exclusion are not detailed in the provided data. This procurement method suggests a potential limitation in the breadth of competition, which could influence price discovery and potentially lead to higher costs compared to unrestricted full and open competition.

Taxpayer Impact: The exclusion of certain sources, even within an otherwise open competition, may limit the government's ability to secure the most competitive pricing, potentially resulting in less favorable outcomes for taxpayers.

Public Impact

Federal agencies requiring shipping and storage solutions will benefit from the reliable supply of corrugated and solid fiber boxes. The contract supports the manufacturing sector by providing business to Ponderosa Packaging Corp. The geographic impact is centered in New York, where the contractor is located, potentially supporting local employment and economic activity. The services delivered are essential for the logistics and supply chain operations of various government departments.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'exclusion of sources' in the competition method raises concerns about potential limitations on competitive pricing and fairness.
Lack of detailed performance metrics makes it difficult to assess the contractor's efficiency and effectiveness beyond delivery.
The short delivery period could indicate a rushed process, potentially impacting quality control or leading to expedited shipping costs.

Positive Signals

The firm fixed-price contract type provides budget certainty for the government.
The award to an established company like Ponderosa Packaging Corp. suggests a level of reliability and experience.
The contract falls under the General Services Administration, a key agency for federal procurement efficiency.

Sector Analysis

The corrugated and solid fiber box manufacturing industry is a vital component of the broader packaging and manufacturing sectors. This contract, valued at $5.4 million, represents a significant procurement within this niche. The North American Industry Classification System (NAICS) code 322211 confirms the specific focus on box manufacturing. Federal spending in this area is crucial for supporting logistics, supply chain management, and the distribution of goods across various government agencies. Comparable spending benchmarks would typically be found within GSA's Federal Acquisition Service (FAS) data for industrial supplies.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a primary set-aside consideration for this contract. Therefore, there are no direct subcontracting implications for small businesses stemming from a specific set-aside requirement. The award to Ponderosa Packaging Corp., a presumably larger entity, means that opportunities for small business subcontractors within the packaging supply chain are not explicitly mandated by this contract's structure.

Oversight & Accountability

The General Services Administration (GSA) generally employs robust oversight mechanisms for its contracts, including those managed by the Federal Acquisition Service (FAS). Accountability is typically ensured through contract terms, performance monitoring, and payment processes. Transparency is facilitated through public contract databases like FPDS. Inspector General jurisdiction would likely fall under the GSA's Office of Inspector General, which investigates fraud, waste, and abuse in GSA programs and contracts.

Related Government Programs

GSA Federal Acquisition Service Contracts
Manufacturing and Industrial Supplies Procurement
Corrugated Box Supply Contracts
Federal Logistics and Supply Chain Support

Risk Flags

Limited competition due to source exclusion.
Short performance period may indicate urgency or potential for rushed execution.
Lack of detailed performance metrics beyond delivery.

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: 2026-04-07. End: 2026-04-28.

What is the specific rationale behind the 'exclusion of sources' in this full and open competition?

The 'exclusion of sources' within a 'full and open competition' award method suggests that while the solicitation was publicly advertised, certain potential bidders were either ineligible from the outset or were disqualified during the evaluation process. Common reasons for exclusion can include failure to meet mandatory pre-qualification criteria, non-compliance with technical specifications, past performance issues, or specific regulatory requirements. Without further details from the contracting agency (General Services Administration in this case), the precise justification remains unclear. This method can sometimes be used to ensure specific capabilities or compliance standards are met, but it inherently limits the competitive pool, potentially impacting the final price achieved for the government.

How does the $5.4 million contract value compare to historical GSA spending on corrugated boxes?

To accurately benchmark the $5.4 million contract value against historical GSA spending on corrugated boxes, a detailed analysis of past procurements under NAICS code 322211 or similar classifications would be necessary. GSA's Federal Acquisition Service (FAS) manages a vast array of supply contracts, and individual awards can fluctuate based on agency needs, market conditions, and contract durations. A $5.4 million award for a 21-day delivery period suggests a substantial volume or specialized requirement. Without access to GSA's historical procurement data specifically filtered for similar box manufacturing contracts, it's difficult to definitively state whether this represents a high, low, or average spending level. However, it indicates a significant single procurement event.

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

A short performance period of 21 days for a contract valued at $5.4 million presents several potential risks. Firstly, it could indicate a need for urgent fulfillment, possibly due to unforeseen demand surges or supply chain disruptions, which might have led to less competitive pricing if Ponderosa Packaging Corp. was the only capable vendor able to meet the tight deadline. Secondly, such a compressed timeline could increase the risk of quality control issues or delivery delays if the contractor faces unexpected production or logistical challenges. Finally, if this short period represents a recurring need, it might suggest a less efficient long-term strategy for procurement, potentially leading to higher overall costs compared to longer-term, more strategically planned contracts.

What is Ponderosa Packaging Corp.'s track record with federal contracts?

Information regarding Ponderosa Packaging Corp.'s specific track record with federal contracts is not detailed in the provided data snippet. To assess their history, one would typically consult federal procurement databases such as the Federal Procurement Data System (FPDS) or SAM.gov. These resources would reveal the number of contracts awarded, their values, agencies involved, performance history (if recorded), and any past issues or awards. Without this external data, it's presumed they are a capable supplier based on this award, but their broader federal performance, reliability, and compliance history remain unknown from this context alone.

Does the firm fixed-price contract type adequately mitigate risk for this specific procurement?

The firm fixed-price (FFP) contract type is generally considered one of the best for mitigating cost risk for the government, as the contractor assumes the responsibility for all costs incurred to deliver the specified goods or services. For a contract involving the manufacturing and delivery of corrugated boxes, where material and labor costs are relatively predictable, FFP is typically appropriate. The risk mitigation is strong as long as the scope of work is clearly defined and Ponderosa Packaging Corp. has accurately estimated its costs. Potential risks remain if unforeseen material price escalations occur or if the scope requires significant changes, which would necessitate contract modifications.

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