GSA awards $5.6M contract for corrugated boxes to Ponderosa Packaging Corp

Contract Overview

Contract Amount: $5,627 ($5.6K)

Contractor: Ponderosa Packaging Corp.

Awarding Agency: General Services Administration

Start Date: 2026-04-10

End Date: 2026-05-01

Contract Duration: 21 days

Daily Burn Rate: $268/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 $5,626.5 to PONDEROSA PACKAGING CORP. for work described as: SHIPPING AND STORAGTEM:- SEE ATTACHED DOCUMENTFOR DETAIL. Key points: 1. Contract value of $5.6 million for a 21-day period. 2. Awarded under full and open competition after exclusion of sources. 3. The contract is for corrugated and solid fiber box manufacturing. 4. Delivery order issued against a larger contract vehicle. 5. Fixed-price contract type suggests predictable costs. 6. The contract is for a short duration, indicating immediate need.

Value Assessment

Rating: fair

The contract value of $5.6 million for a 21-day delivery period appears high for corrugated boxes. Benchmarking against similar contracts for packaging materials is necessary to determine if this represents good value. The fixed-price nature provides cost certainty, but the unit cost needs to be assessed against market rates for similar products to ensure competitiveness.

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 competition was sought, certain sources may have been excluded, potentially limiting the number of bidders. Further details on the exclusion criteria are needed to fully assess the competitive landscape and its impact on price discovery.

Taxpayer Impact: The limited competition may have resulted in a higher price than if all potential sources were included. Taxpayers may not have received the most competitive pricing available in the market.

Public Impact

The contract benefits federal agencies requiring shipping and storage materials. Services delivered include the manufacturing and supply of corrugated and solid fiber boxes. The geographic impact is primarily New York, where the contractor is located. Workforce implications are likely within Ponderosa Packaging Corp.'s manufacturing facilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition could lead to suboptimal pricing.
Short contract duration might indicate urgent, potentially higher-cost needs.
Lack of detailed product specifications in the provided data.

Positive Signals

Fixed-price contract type offers cost predictability.
Awarded by General Services Administration, a reputable contracting agency.
Contractor is established in the corrugated box manufacturing industry.

Sector Analysis

The corrugated and solid fiber box manufacturing industry (NAICS 322211) is a mature sector serving diverse markets, including government procurement. Federal spending on packaging materials is consistent, driven by logistics and supply chain needs across various agencies. This contract fits within the broader category of industrial supplies and services, with typical contract values varying significantly based on volume and duration.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses arising from a set-aside. The primary contractor, Ponderosa Packaging Corp., is likely a medium to large enterprise given the contract value.

Oversight & Accountability

Oversight for this contract would typically fall under the General Services Administration's Federal Acquisition Service. Accountability measures are inherent in the firm-fixed-price contract type, requiring delivery of specified goods. Transparency is facilitated by public contract databases, though specific performance metrics and detailed justifications for source exclusion would enhance oversight.

Related Government Programs

Federal Supply Schedule (FSS) contracts for packaging materials
General Services Administration (GSA) procurement vehicles
Department of Defense (DoD) logistics and supply chain contracts
Office supplies and equipment procurement

Risk Flags

Potential for suboptimal pricing due to limited competition.
High contract value for a short duration requires justification.
Lack of detailed specifications for the boxes procured.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $5,626.5 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 $5,626.5.

What is the period of performance?

Start: 2026-04-10. End: 2026-05-01.

What is the historical spending pattern for corrugated boxes by the General Services Administration?

Analyzing historical spending patterns for corrugated boxes by the GSA requires access to detailed procurement data over several fiscal years. Typically, GSA procures such items through various contract vehicles, including Federal Supply Schedules (FSS) and other competitive solicitations. Spending can fluctuate based on agency demand, inventory management strategies, and the availability of alternative suppliers. A review of past contracts would reveal trends in contract values, average unit prices, and the number of bidders, providing context for the current $5.6 million award. Without specific historical data, it's difficult to ascertain if this award represents an increase or decrease in typical spending for this category.

How does the unit cost of boxes under this contract compare to market rates?

Determining the unit cost requires knowing the quantity of boxes procured under this $5.6 million contract. Assuming a significant quantity for a 21-day delivery, the unit cost needs to be benchmarked against industry averages for corrugated boxes of similar specifications (e.g., size, strength, material). Market research reports and pricing data from other government contracts or commercial suppliers can serve as benchmarks. If the unit cost significantly exceeds market rates, it could indicate a lack of sufficient competition or inefficient pricing, even under a fixed-price contract.

What were the specific reasons for excluding other sources in this 'full and open competition after exclusion of sources' award?

The designation 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' implies that a solicitation was issued broadly, but certain potential offerors were intentionally excluded from consideration. The reasons for exclusion must be documented and justifiable under federal acquisition regulations. Common reasons include failure to meet minimum technical requirements, past performance issues, inability to meet delivery schedules, or non-compliance with solicitation terms. Understanding these specific exclusion criteria is crucial for assessing whether the competition was genuinely robust or artificially limited, which could impact the fairness of the award and the final price.

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

Ponderosa Packaging Corp.'s track record with federal contracts, especially with the GSA, would be assessed by reviewing their past performance ratings and contract history. This includes examining the number and types of contracts they have held, their on-time delivery rates, quality of goods/services provided, and any past disputes or contract terminations. A history of successful contract performance, particularly with similar packaging requirements, would indicate reliability and capability. Conversely, a history of issues could raise concerns about the current award's risk profile.

What is the typical duration and value for GSA contracts for corrugated boxes?

The typical duration and value for GSA contracts for corrugated boxes can vary widely. Many such requirements are fulfilled through indefinite-delivery/indefinite-quantity (IDIQ) contracts or Federal Supply Schedule (FSS) offerings, which allow for task orders over extended periods. Short-duration delivery orders, like the 21-day period in this case, often signify immediate operational needs rather than long-term supply agreements. Contract values can range from thousands to millions of dollars, depending on the volume, specifications, and the specific GSA schedule or solicitation used. This $5.6 million award for a short period suggests a substantial, urgent requirement.

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: $5,627

Exercised Options: $5,627

Current Obligation: $5,627

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