GSA Awards $6,296 Contract for Machinery WIP Towels to Rite-Kem, Inc. Under Full and Open Competition

Contract Overview

Contract Amount: $6,296 ($6.3K)

Contractor: Rite-Kem, Inc.

Awarding Agency: General Services Administration

Start Date: 2026-04-01

End Date: 2026-04-07

Contract Duration: 6 days

Daily Burn Rate: $1.0K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT

Sector: Other

Official Description: TOWEL,MACHINERY WIP

Place of Performance

Location: TUPELO, LEE County, MISSISSIPPI, 38803

State: Mississippi Government Spending

Plain-Language Summary

General Services Administration obligated $6,296 to RITE-KEM, INC. for work described as: TOWEL,MACHINERY WIP Key points: 1. Contract awarded for machinery WIP towels, a niche industrial supply. 2. Competition was full and open, suggesting a competitive bidding process. 3. The contract value is relatively small, indicating limited overall spending. 4. The sector is manufacturing support, essential for industrial operations.

Value Assessment

Rating: fair

The contract value of $6,296 is modest. Without specific unit pricing or comparison data for similar machinery WIP towels, it's difficult to definitively assess if the pricing is excellent or concerning. The fixed-price with economic price adjustment suggests potential for cost fluctuations.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which typically allows for the widest possible range of bidders and promotes price discovery. The award method is a BPA Call, indicating it's a call-off from an existing Blanket Purchase Agreement.

Taxpayer Impact: Given the small contract value, the direct taxpayer impact is minimal. However, efficient procurement through competition ensures value for taxpayer money spent on essential supplies.

Public Impact

Ensures availability of essential cleaning supplies for industrial machinery maintenance. Supports a specific manufacturing sub-sector (Soap and Other Detergent Manufacturing). Demonstrates GSA's role in procuring specialized industrial goods.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Economic price adjustment clause could lead to cost increases.
Limited contract value may not reflect true market demand or potential for larger savings.

Positive Signals

Full and open competition promotes fair pricing.
BPA Call mechanism can streamline procurement for recurring needs.

Sector Analysis

The procurement falls under industrial supplies, specifically related to cleaning and maintenance within manufacturing. Benchmarks for this specific niche are hard to establish without more granular data, but GSA generally aims for competitive pricing across all sectors.

Small Business Impact

The data does not indicate if small businesses were involved in this specific award or the underlying BPA. Further analysis would be needed to determine small business participation.

Oversight & Accountability

The General Services Administration (GSA) oversees this contract through its Federal Acquisition Service. Standard procurement regulations and oversight apply, ensuring compliance and accountability for this BPA Call.

Related Government Programs

Soap and Other Detergent Manufacturing
General Services Administration Contracting
Federal Acquisition Service Programs

Risk Flags

Potential for cost increases due to Economic Price Adjustment.
Limited visibility into specific unit pricing and market benchmarks.
Small contract value may not represent the full scope of potential needs.
Uncertainty regarding small business participation.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $6,296 to RITE-KEM, INC.. TOWEL,MACHINERY WIP

Who is the contractor on this award?

The obligated recipient is RITE-KEM, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $6,296.

What is the period of performance?

Start: 2026-04-01. End: 2026-04-07.

What is the typical unit cost for machinery WIP towels, and how does this contract's pricing compare?

Without specific unit cost data for the awarded contract or comparable market research, a precise comparison is not possible. However, the contract's modest total value suggests that either the quantity is small or the unit price is within a reasonable range for specialized industrial cleaning supplies. Further investigation into the BPA's overall pricing structure would be beneficial.

What are the potential risks associated with the 'Economic Price Adjustment' clause in this contract?

The 'Economic Price Adjustment' (EPA) clause allows for price changes based on fluctuations in specified economic factors, such as raw material costs or labor. The primary risk is that these adjustments could lead to higher costs for the government than initially anticipated, especially if market conditions drive up input prices significantly. This could erode the value of the fixed-price component.

How effective is the 'Full and Open Competition' method in ensuring value for this specific type of specialized supply?

Full and open competition is generally effective in driving value by encouraging multiple vendors to bid, leading to competitive pricing. For specialized items like machinery WIP towels, its effectiveness depends on the number of qualified suppliers. If the market is limited, competition might be less robust, but it still provides a baseline for price discovery and ensures that the government isn't unduly limiting its options.

Industry Classification

NAICS: Manufacturing › Soap, Cleaning Compound, and Toilet Preparation Manufacturing › Soap and Other Detergent Manufacturing

Product/Service Code: CLEANING EQPT AND SUPPLIES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT (K)

Evaluated Preference: NONE

Contractor Details

Address: 703 WESTMORELAND DR, TUPELO, MS, 38801

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

Financial Breakdown

Contract Ceiling: $6,296

Exercised Options: $6,296

Current Obligation: $6,296

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47QSWA23A001F

IDV Type: BPA

Timeline