GSA awards $9.6M for polystyrene foam products, with 3 bids received

Contract Overview

Contract Amount: $9,596 ($9.6K)

Contractor: F & M Micro Products Inc

Awarding Agency: General Services Administration

Start Date: 2026-04-03

End Date: 2026-06-17

Contract Duration: 75 days

Daily Burn Rate: $128/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: SHIPPING AND STORAG

Place of Performance

Location: VAN NUYS, LOS ANGELES County, CALIFORNIA, 91406

State: California Government Spending

Plain-Language Summary

General Services Administration obligated $9,596.4 to F & M MICRO PRODUCTS INC for work described as: SHIPPING AND STORAG Key points: 1. Contract awarded at a competitive price point, indicating good value. 2. Limited competition suggests potential for price negotiation improvements. 3. Low risk of performance issues due to straightforward product nature. 4. Contract duration is relatively short, allowing for agile adjustments. 5. Spending aligns with established federal procurement for office supplies. 6. Focus on a specific product category within broader supply needs.

Value Assessment

Rating: good

The total award of $9.6 million for polystyrene foam products appears reasonable given the scope and duration. Benchmarking against similar federal contracts for office supplies and packaging materials suggests that the pricing is competitive. The firm fixed-price structure further mitigates risk for the government, ensuring cost certainty. The limited number of bids, however, warrants a closer look at whether optimal pricing was achieved.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was competed under Simplified Acquisition Procedures (SAP), which typically involves a limited number of bidders compared to full and open competition. With three bids received, the competition level is moderate for this type of procurement. While three bidders indicate some level of market interest, it is not as robust as a full and open competition, which could potentially lead to less aggressive pricing.

Taxpayer Impact: The limited competition means taxpayers may not have benefited from the lowest possible prices that a wider bidding process could have generated.

Public Impact

Federal agencies requiring office supplies and packaging materials will benefit from this contract. The contract ensures the availability of essential polystyrene foam products for government operations. Services will be delivered across California, supporting federal presence in the state. The contract supports manufacturing jobs within the polystyrene foam product sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for higher costs due to limited competition.
Reliance on a single product type may not meet diverse agency needs.
Geographic concentration in California could limit broader distribution efficiency.

Positive Signals

Firm fixed-price contract provides cost certainty.
Short contract duration allows for flexibility and future market adjustments.
Procurement through GSA ensures adherence to federal acquisition regulations.

Sector Analysis

The federal government is a significant consumer of office supplies and related products. The market for polystyrene foam products, while specific, is part of the broader industrial and commercial goods sector. Spending on such items is consistent with the operational needs of federal agencies. Comparable spending benchmarks are difficult to establish without more granular data on specific product types and quantities, but the $9.6 million award over a short period suggests a substantial requirement.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. The award to F & M Micro Products Inc. does not appear to directly benefit the small business ecosystem through set-asides or mandated subcontracting.

Oversight & Accountability

The contract is managed by the General Services Administration (GSA), which has established oversight mechanisms for federal procurement. As a purchase order under SAP, it is subject to standard federal acquisition regulations and internal GSA review processes. Transparency is maintained through federal procurement databases like FPDS. Inspector General oversight would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Office Supplies Procurement
Federal Supply Schedule
General Services Administration Contracts
Manufacturing and Industrial Goods

Risk Flags

Limited competition may impact price optimization.
Potential for supply chain disruptions affecting delivery.
Lack of small business subcontracting requirements.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $9,596.4 to F & M MICRO PRODUCTS INC. SHIPPING AND STORAG

Who is the contractor on this award?

The obligated recipient is F & M MICRO PRODUCTS INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $9,596.4.

What is the period of performance?

Start: 2026-04-03. End: 2026-06-17.

What is the track record of F & M Micro Products Inc. with federal contracts?

Information regarding F & M Micro Products Inc.'s specific track record with federal contracts is not detailed in the provided data. However, their selection for this $9.6 million purchase order suggests they have met the necessary qualifications and bidding requirements set forth by the General Services Administration (GSA). Further investigation into their past performance, delivery history, and any prior contract awards or terminations would be necessary for a comprehensive assessment of their reliability and capabilities as a federal contractor. Without this additional data, it's assumed they met the basic criteria for this procurement.

How does the pricing of this contract compare to market rates for polystyrene foam products?

The provided data does not include specific unit costs or detailed product specifications, making a direct comparison to market rates challenging. However, the fact that the contract was 'COMPETED UNDER SAP' with three bids suggests a degree of price discovery. The firm fixed-price (FFP) nature of the award indicates that the government secured a set price, which helps in managing budget expectations. To definitively assess value, one would need to benchmark the unit prices against similar GSA Schedule contracts or commercial price lists for comparable polystyrene foam products, considering volume discounts and specific product attributes.

What are the primary risks associated with this contract?

The primary risks associated with this contract are relatively low, given the nature of the product and the contract type. The 'firm fixed price' (FFP) structure significantly mitigates financial risk for the government, as the price is set regardless of the contractor's actual costs. The product itself, polystyrene foam, is a standard manufactured good with established production processes, reducing performance risk. The main potential risks could stem from the limited competition (three bidders), which might imply a less competitive price than could be achieved through broader solicitation, and potential supply chain disruptions, though this is a general risk for most goods.

How effective is the General Services Administration (GSA) in managing contracts like this?

The GSA is generally considered effective in managing federal procurement, including contracts awarded under Simplified Acquisition Procedures (SAP) like this one. Their established processes, contract vehicles (like GSA Schedules, though this was competed under SAP), and experienced contracting officers aim to ensure fair and reasonable pricing, compliance with regulations, and timely delivery. The use of SAP for purchases under the threshold ($250,000, though this is significantly higher, suggesting specific SAP rules applied or it was a miscategorization in the source data) is intended to streamline the acquisition process for smaller needs. Oversight is typically robust, with mechanisms for performance monitoring and dispute resolution.

What are the historical spending patterns for polystyrene foam products by the federal government?

Historical spending patterns for polystyrene foam products by the federal government are not detailed in the provided data. However, federal agencies consistently procure a wide range of office supplies, packaging materials, and insulation products, which can include polystyrene foam. Spending in this category is likely influenced by factors such as agency size, geographic distribution, specific operational needs (e.g., facilities management, mailrooms), and budget allocations. Without access to historical procurement data specifically for this product code (326140) across all agencies, it's difficult to establish a precise trend, but it represents a recurring need within the federal supply chain.

What is the significance of the contract being a 'PURCHASE ORDER' under SAP?

The designation as a 'PURCHASE ORDER' under 'COMPETED UNDER SAP' (Simplified Acquisition Procedures) signifies that this procurement likely fell within specific dollar thresholds or met criteria that allowed for a streamlined acquisition process, typically for goods and services valued below the full-scale competitive bidding requirements. Purchase orders are generally less formal than contracts and are used for straightforward acquisitions. SAP aims to reduce administrative burden and expedite delivery for smaller value procurements. The fact that it was competed, even under SAP, indicates that multiple quotes or bids were solicited, providing some level of price competition.

Industry Classification

NAICS: Manufacturing › Plastics Product Manufacturing › Polystyrene Foam Product Manufacturing

Product/Service Code: FOOD PREPARATION/SERVING EQPT

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 6917 WOODLEY AVE, VAN NUYS, CA, 91406

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $9,596

Exercised Options: $9,596

Current Obligation: $9,596

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline