GSA awards $3.8M for shredding machines, highlighting potential for competitive pricing in office equipment

Contract Overview

Contract Amount: $3,858 ($3.9K)

Contractor: Security Engineered Machinery CO., Inc.

Awarding Agency: General Services Administration

Start Date: 2026-04-11

End Date: 2026-05-11

Contract Duration: 30 days

Daily Burn Rate: $129/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: SHREDDING MACHINE,P

Place of Performance

Location: WESTBOROUGH, WORCESTER County, MASSACHUSETTS, 01581

State: Massachusetts Government Spending

Plain-Language Summary

General Services Administration obligated $3,857.58 to SECURITY ENGINEERED MACHINERY CO., INC. for work described as: SHREDDING MACHINE,P Key points: 1. Contract awarded via GSA's MAS program, suggesting established pricing benchmarks. 2. Fixed-price contract type limits cost overruns for the government. 3. Short performance period (30 days) indicates a specific, immediate need. 4. Contractor has a history of federal awards, implying some level of reliability. 5. The specific product category (NAICS 334119) is broad, potentially encompassing various office equipment needs.

Value Assessment

Rating: good

The contract value of $3.86 million for shredding machines appears reasonable given the broad category and potential for bulk purchasing through the MAS program. Without specific model details or quantity, a direct per-unit cost comparison is difficult. However, the General Services Administration (GSA) MAS program generally aims for competitive pricing, and the firm fixed-price structure further protects the government from unexpected cost increases. This award should be benchmarked against other similar office equipment procurements under the MAS program to confirm value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This is the most competitive procurement method and generally leads to better price discovery and value for the government. The specific number of bidders is not provided, but the use of the MAS schedule suggests a pre-vetted pool of offerors, streamlining the competition process.

Taxpayer Impact: Full and open competition ensures that taxpayer dollars are used efficiently by fostering a competitive environment that drives down prices for essential government equipment.

Public Impact

Federal agencies requiring secure document destruction services will benefit from this contract. The contract provides physical shredding machines, essential for compliance with data privacy regulations. The geographic impact is likely nationwide, as GSA contracts typically serve all federal agencies. Workforce implications are minimal, primarily related to the installation and maintenance of the equipment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific quantity and model details makes it difficult to assess true value for money.
Short performance period could indicate a rush order, potentially leading to less optimal pricing.
Reliance on a single contractor (SECURITY ENGINEERED MACHINERY CO., INC.) for this value, though competed, warrants monitoring.

Positive Signals

Awarded under GSA MAS, a program known for competitive pricing and streamlined acquisition.
Firm Fixed Price contract type mitigates risk of cost escalation.
Contractor has prior federal contract experience, suggesting familiarity with government requirements.

Sector Analysis

The procurement falls within the broader office equipment and supplies sector, specifically related to data security and destruction. The General Services Administration (GSA) Federal Acquisition Service (FAS) manages numerous contracts for office equipment through its Multiple Award Schedule (MAS), aiming to provide agencies with a wide range of products at competitive prices. This contract for shredding machines is a typical example of GSA's role in consolidating federal purchasing power for common goods.

Small Business Impact

The contract was not set aside for small businesses (SS: false, SB: false). While the primary awardee is not specified as a small business, the MAS program itself often includes small business prime contractors. There is no explicit information on subcontracting plans, but given the nature of the product, it's unlikely to involve significant subcontracting opportunities for small businesses unless specialized maintenance is required.

Oversight & Accountability

The contract is managed under the GSA's Federal Acquisition Service, which has established oversight mechanisms for its MAS program. The firm fixed-price nature of the award provides a degree of financial oversight by locking in costs. Transparency is generally maintained through public contract databases like FPDS. The specific Inspector General jurisdiction would be that of the GSA OIG.

Related Government Programs

GSA Multiple Award Schedule (MAS)
Office Equipment Procurement
Document Destruction Services
Federal Data Security Contracts

Risk Flags

Potential for less competitive pricing due to short performance window.
Lack of detailed specifications hinders comprehensive value assessment.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $3,857.58 to SECURITY ENGINEERED MACHINERY CO., INC.. SHREDDING MACHINE,P

Who is the contractor on this award?

The obligated recipient is SECURITY ENGINEERED MACHINERY CO., INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $3,857.58.

What is the period of performance?

Start: 2026-04-11. End: 2026-05-11.

What is the typical price range for similar shredding machines procured through GSA MAS?

Determining the exact price range for similar shredding machines under the GSA MAS program without specific model numbers and quantities is challenging. However, the GSA MAS program aims to provide competitive pricing. Individual line items on the MAS schedule for shredding machines can range from a few hundred dollars for small, personal units to several thousand dollars for high-capacity, industrial-grade machines. The total award value of $3.86 million suggests a significant quantity or higher-end models were procured. Agencies using the MAS program can compare pricing across different vendors on the schedule to ensure they are obtaining fair and reasonable prices. Benchmarking against historical awards for similar equipment under the same schedule is crucial for validating the value of this specific contract.

How does the firm fixed-price contract type benefit the government in this scenario?

A firm fixed-price (FFP) contract type is highly beneficial for the government in this scenario as it shifts the risk of cost overruns to the contractor, SECURITY ENGINEERED MACHINERY CO., INC. Under an FFP agreement, the price is set and not subject to adjustment based on the contractor's actual costs. This provides budget certainty for the General Services Administration (GSA) and the end-user agencies. It simplifies financial management and eliminates the need for extensive cost audits, as the government knows exactly what it will pay for the shredding machines. This contract structure is particularly suitable for procurements where the scope of work and requirements are well-defined, as is typical for the purchase of standard equipment like shredding machines.

What are the potential risks associated with a short 30-day performance period?

A short 30-day performance period, while indicating a specific and potentially urgent need, can introduce several risks. Firstly, it might imply that the procurement was time-sensitive, potentially limiting the time available for thorough market research and competition, even within the MAS framework. This could lead to less optimal pricing if vendors felt rushed. Secondly, it could indicate a need for immediate replacement or a short-term requirement, which might not represent the best long-term value strategy for the government. Lastly, a compressed timeline for delivery and installation could increase the risk of logistical challenges or quality issues if not managed meticulously by both the contractor and the contracting officer.

What is the significance of the NAICS code 334119 for this contract?

The North American Industry Classification System (NAICS) code 334119, 'Other Computer Peripheral Equipment Manufacturing,' is assigned to this contract. While shredding machines are not typically considered 'computer peripheral equipment' in the traditional sense (like printers or keyboards), this classification might be used because some advanced shredders incorporate electronic controls, data wiping capabilities, or are integrated into broader office technology systems. This code suggests the procurement is categorized under manufacturing of related electronic office equipment. It helps in statistical analysis and understanding the industrial sector involved, though it might not perfectly align with the primary function of a basic shredding machine.

How does the GSA MAS program influence the competition and pricing for this contract?

The General Services Administration's Multiple Award Schedule (MAS) program significantly influences competition and pricing. MAS establishes pre-negotiated contract vehicles with numerous vendors across various product and service categories, including office equipment. This means that when an agency needs shredding machines, they can choose from a pre-vetted pool of contractors who have already agreed to specific terms and pricing ceilings. This process inherently fosters competition among MAS holders, as agencies can solicit quotes from multiple vendors on the schedule. The pricing is generally considered fair and reasonable because it has been benchmarked during the initial MAS solicitation process. This contract's award under 'Full and Open Competition' via MAS indicates that multiple vendors were likely solicited, leading to competitive quotes and ensuring the government receives value.

Industry Classification

NAICS: Manufacturing › Computer and Peripheral Equipment Manufacturing › Other Computer Peripheral Equipment Manufacturing

Product/Service Code: OFFICE SUPPLIES AND DEVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 5 WALKUP DR, WESTBOROUGH, MA, 01581

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $3,858

Exercised Options: $3,858

Current Obligation: $3,858

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47QSEA22A0009

IDV Type: BPA

Timeline