Ponderosa Packaging Corp. awarded $2.25M for corrugated box manufacturing, highlighting potential value in specialized packaging solutions

Contract Overview

Contract Amount: $2,251 ($2.3K)

Contractor: Ponderosa Packaging Corp.

Awarding Agency: General Services Administration

Start Date: 2026-04-08

End Date: 2026-04-29

Contract Duration: 21 days

Daily Burn Rate: $107/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 $2,250.6 to PONDEROSA PACKAGING CORP. for work described as: SHIPPING AND STORAGTEM:- SEE ATTACHED DOCUMENTFOR DETAIL. Key points: 1. The contract value of $2.25 million suggests a significant need for specialized packaging, potentially indicating a niche market or large-scale operational requirements. 2. Competition was conducted under 'full and open competition after exclusion of sources,' which warrants further investigation into the specific reasons for source exclusion and its impact on overall competition. 3. The short performance period of 21 days for this delivery order suggests a need for rapid fulfillment, possibly for urgent operational support or project-specific requirements. 4. The fixed-price contract type offers cost certainty for the government, but the value proposition hinges on the efficiency and cost-effectiveness of Ponderosa Packaging Corp.'s production. 5. The North American Industry Classification System (NAICS) code 322211 points to the corrugated and solid fiber box manufacturing sector, a critical component of the supply chain for various government agencies. 6. The contract's origin in New York (NY) may reflect regional distribution needs or the location of a key government facility requiring these packaging materials.

Value Assessment

Rating: fair

The contract value of $2.25 million for corrugated and solid fiber boxes appears substantial. Benchmarking this against similar large-scale government packaging contracts would be necessary to determine if it represents good value. The fixed-price nature provides cost predictability, but the ultimate value depends on the unit costs and efficiency of Ponderosa Packaging Corp.'s operations. Without detailed cost breakdowns or comparisons to market rates for similar volumes and specifications, a definitive value assessment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'full and open competition after exclusion of sources.' This specific procurement method indicates that while the competition was intended to be broad, certain sources were excluded. The exact reasons for this exclusion are not detailed but could stem from specific technical requirements, past performance issues with other vendors, or unique capabilities possessed by the awarded contractor. The level of competition, therefore, might be less than ideal, potentially impacting price discovery and the government's ability to secure the most competitive pricing.

Taxpayer Impact: The exclusion of sources, even if justified, may limit the number of competitive bids received, potentially leading to higher prices for taxpayers compared to a truly open and unrestricted competition.

Public Impact

The primary beneficiaries are likely government agencies requiring robust and specialized packaging for the shipment and storage of goods, ensuring their protection during transit and warehousing. The services delivered include the manufacturing and provision of corrugated and solid fiber boxes, tailored to meet specific government needs for durability and size. The geographic impact is centered in New York (NY), suggesting that this contract supports operations or distribution hubs within that region. Workforce implications may include job creation or sustained employment at Ponderosa Packaging Corp.'s facilities, particularly in manufacturing and logistics roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'exclusion of sources' clause in the competition type requires scrutiny to ensure it was applied appropriately and did not unduly restrict competition.
The fixed-price contract type, while offering cost certainty, could lead to the government overpaying if Ponderosa Packaging Corp.'s costs are significantly lower than anticipated.
The lack of detailed performance metrics or specific quality standards in the provided data makes it difficult to assess the contractor's past performance or potential risks.
The short delivery order duration (21 days) might indicate a reactive procurement, potentially leading to rushed production and increased risk of errors or quality issues.

Positive Signals

The award to Ponderosa Packaging Corp. suggests they possess the necessary capabilities and potentially specialized expertise to meet the government's packaging requirements.
The use of a 'full and open competition' framework, even with exclusions, indicates an attempt to leverage market competition to some degree.
The fixed-price contract type aligns with government objectives for cost control and predictability.
The contract's focus on a specific manufacturing sector (corrugated boxes) suggests it addresses a defined and recurring government need.

Sector Analysis

The corrugated and solid fiber box manufacturing industry (NAICS 322211) is a vital part of the broader paper and packaging sector, serving as a critical supplier for logistics, e-commerce, and government operations. This sector is characterized by significant capital investment in machinery and a focus on material sourcing and production efficiency. Government spending in this area is often driven by the need for durable, customizable, and cost-effective packaging solutions for everything from office supplies to sensitive equipment. Comparable spending benchmarks would typically look at the volume and type of boxes procured by agencies like the Department of Defense or GSA for their logistical operations.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific benefits for the small business ecosystem stemming from this particular award. The focus remains on larger-scale manufacturing capabilities, and any involvement of small businesses would likely be through Ponderosa Packaging Corp.'s own supply chain or as potential competitors in future, smaller-scale procurements.

Oversight & Accountability

Oversight for this contract would primarily fall under the General Services Administration (GSA), specifically its Federal Acquisition Service. The fixed-price contract type provides a degree of accountability by linking payment to delivery. Transparency is facilitated through contract databases like FPDS. However, the specific oversight mechanisms, such as performance reviews, quality assurance checks, and dispute resolution processes, are not detailed in the provided data. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

General Services Administration (GSA) Supply Contracts
Department of Defense Packaging Requirements
Federal Prison Industries (UNICOR) Packaging Services
Logistics and Distribution Support Services

Risk Flags

Potential for limited competition due to source exclusion.
Risk of overpayment under fixed-price contract if contractor costs are low.
Quality control concerns due to short delivery timeline.
Lack of detailed performance metrics for risk assessment.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $2,250.6 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 $2,250.6.

What is the period of performance?

Start: 2026-04-08. End: 2026-04-29.

What specific factors led to the exclusion of certain sources in this 'full and open competition after exclusion of sources' award?

The provided data does not specify the reasons for excluding certain sources. Typically, such exclusions are based on stringent technical requirements that only a limited number of vendors can meet, past performance issues with specific contractors, or unique capabilities possessed by the awarded vendor that are critical for the requirement. To understand this fully, one would need to review the solicitation documents, pre-award assessments, and any justifications for source exclusion. Without this information, it's difficult to ascertain if the exclusion was warranted or if it unnecessarily limited competition, potentially impacting the final price and value for the government.

How does the $2.25 million contract value compare to typical government spending on corrugated and solid fiber boxes?

The $2.25 million value for a single delivery order for corrugated and solid fiber boxes is substantial. Government agencies, particularly those involved in logistics and supply chain management like the Department of Defense and GSA, procure vast quantities of packaging materials. However, this amount is likely for a specific, large-scale requirement or a significant quantity over a short period, given the 21-day delivery window. To benchmark this value effectively, one would need to compare it against historical data for similar large-volume packaging procurements, considering factors like box specifications (size, strength, material), delivery locations, and the prevailing market rates at the time of award. Without such comparative data, it's challenging to definitively state whether this represents a competitive price point.

What are the potential risks associated with a fixed-price contract for packaging materials, especially with a short delivery timeline?

A fixed-price contract offers cost certainty to the government, meaning the price is set regardless of the contractor's actual costs. The primary risk for the government in this scenario is that Ponderosa Packaging Corp. might have significantly lower production costs than anticipated, leading to a less favorable price for the government. Conversely, if unforeseen cost increases occur for the contractor, they might cut corners on quality or materials to maintain profitability, potentially impacting the durability or suitability of the boxes. The short 21-day delivery timeline adds pressure, increasing the risk of production errors, quality control lapses, or logistical challenges, which could lead to delays or substandard products, despite the fixed price.

What is the significance of NAICS code 322211 (Corrugated and Solid Fiber Box Manufacturing) in the context of federal spending?

NAICS code 322211 signifies a critical segment of the manufacturing sector that directly supports federal operations. Government agencies rely heavily on packaging for the shipment, storage, and protection of a wide array of goods, from office supplies and equipment to sensitive materials. Federal spending in this area is driven by the logistical needs of departments like Defense, Homeland Security, and GSA, as well as agencies requiring secure transport for program-related items. Contracts under this code ensure the availability of essential packaging solutions, contributing to the efficiency and integrity of government supply chains and operational readiness.

How does the 'delivery order' contract type differ from other contract types and what are its implications?

A delivery order is a type of task order issued under a larger indefinite-delivery, indefinite-quantity (IDIQ) contract or a basic ordering agreement. It specifies the exact goods or services to be delivered, the quantity, price, and delivery date for a particular instance of need. This differs from a fixed-price contract awarded directly for a specific project, as it implies an underlying agreement that allows for multiple orders over time. The implication here is that Ponderosa Packaging Corp. likely has an existing contract vehicle with GSA that permits the issuance of such delivery orders. This structure provides flexibility for the government to order needed supplies as requirements arise, while the contractor is obligated to fulfill these orders, often within pre-negotiated terms and 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: $2,251

Exercised Options: $2,251

Current Obligation: $2,251

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