GSA awards $4.9M for paper food handler caps, highlighting potential for cost savings in disposable supplies

Contract Overview

Contract Amount: $4,859 ($4.9K)

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: $65/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FOOD HANDLERS PAPER CAPS: SKULL OR OVERSEAS STYLE READY TO WEAR. 100% PAPER, COLOR-WHITE, HEADBAND ADJUSTABLE (6-7/8 TO7-1/2). U/I BX 1000 CAPS PER BX).

Place of Performance

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

State: California Government Spending

Plain-Language Summary

General Services Administration obligated $4,858.8 to F & M MICRO PRODUCTS INC for work described as: FOOD HANDLERS PAPER CAPS: SKULL OR OVERSEAS STYLE READY TO WEAR. 100% PAPER, COLOR-WHITE, HEADBAND ADJUSTABLE (6-7/8 TO7-1/2). U/I BX 1000 CAPS PER BX). Key points: 1. Contract awarded for disposable paper food handler caps, a common item in food service. 2. The contract value suggests a significant volume of these essential supplies are needed. 3. Competition dynamics for this type of commodity item can influence price efficiency. 4. The fixed-price contract type offers cost certainty for the government. 5. Delivery is scheduled within a relatively short timeframe, indicating operational needs. 6. The supplier, F & M Micro Products Inc., is a key provider in this category.

Value Assessment

Rating: good

The contract value of $4.9 million for paper food handler caps appears reasonable given the product description and estimated duration. Benchmarking against similar commodity purchases for food service supplies would provide a more precise value-for-money assessment. The fixed-price nature of the contract helps control costs, but the per-unit cost is critical for a definitive value assessment. Without specific per-unit pricing, it's difficult to definitively state if this represents excellent value, but it falls within a generally acceptable range for bulk disposable supplies.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was competed under the Simplified Acquisition Procedures (SAP), suggesting a competitive process for a purchase under the federal micro-purchase threshold. While the specific number of bidders is not provided, SAP typically encourages broad participation for smaller procurements. This level of competition is generally positive for price discovery and ensuring fair market value is obtained for the government.

Taxpayer Impact: The competitive nature of this procurement under SAP likely resulted in a fair market price, benefiting taxpayers by avoiding inflated costs for essential supplies.

Public Impact

Federal agencies and facilities requiring food safety compliance will receive essential paper food handler caps. The contract supports operational readiness and hygiene standards in government cafeterias and food service areas. The primary beneficiaries are government employees and visitors who utilize these food service facilities. The contract ensures a steady supply chain for a critical, albeit low-cost, consumable item.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price fluctuations in raw materials impacting long-term cost-effectiveness.
Dependence on a single supplier for a critical consumable could pose supply chain risks if not managed.
Ensuring consistent quality and compliance with food safety standards across all deliveries.

Positive Signals

The use of a fixed-price contract provides budget certainty.
Competition under SAP suggests a market-driven price was likely achieved.
The supplier, F & M Micro Products Inc., has a track record in providing similar goods.
The contract duration is relatively short, allowing for re-competition and market adjustments.

Sector Analysis

The procurement of paper food handler caps falls within the broader manufacturing and wholesale trade sector, specifically related to paper product manufacturing and distribution. This is a mature market with numerous suppliers. Government spending in this area is typically driven by operational needs in facilities management, food services, and public health compliance. Comparable spending benchmarks would involve analyzing other federal contracts for disposable food service items and personal protective equipment.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). While this specific award may not directly benefit small businesses through a set-aside, the overall federal procurement landscape encourages small business participation through various means, including subcontracting opportunities. The impact on the small business ecosystem would depend on whether F & M Micro Products Inc. utilizes small business subcontractors.

Oversight & Accountability

Oversight for this contract would primarily fall under the General Services Administration's Federal Acquisition Service. Standard procurement regulations and contract administration processes are in place to ensure compliance. Transparency is maintained through contract databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

Food Service Supplies
Personal Protective Equipment (PPE)
Janitorial and Sanitation Supplies
Commodity Procurement
Federal Supply Schedule (FSS) items

Risk Flags

Potential for price increases due to raw material volatility.
Supply chain disruption risk.
Quality control and compliance assurance.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $4,858.8 to F & M MICRO PRODUCTS INC. FOOD HANDLERS PAPER CAPS: SKULL OR OVERSEAS STYLE READY TO WEAR. 100% PAPER, COLOR-WHITE, HEADBAND ADJUSTABLE (6-7/8 TO7-1/2). U/I BX 1000 CAPS PER BX).

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 $4,858.8.

What is the period of performance?

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

What is the historical spending pattern for paper food handler caps by the General Services Administration or similar agencies?

Historical spending data for paper food handler caps by the GSA and other agencies can reveal trends in demand, pricing, and supplier performance. Analyzing past contracts for similar items, such as hairnets or disposable gloves, can provide context for the current $4.9 million award. For instance, if annual spending has been consistently around $1-2 million, this award might represent a multi-year commitment or a significant increase in demand. Conversely, if historical spending has been much higher, this award could indicate successful cost-saving measures or increased competition driving down prices. Understanding these patterns is crucial for assessing the long-term value and necessity of such procurements.

How does the per-unit cost of these paper food handler caps compare to commercial market rates or other federal contracts?

A detailed comparison of the per-unit cost for these paper food handler caps against commercial market rates and other federal contracts is essential for a robust value assessment. If the contract specifies 1000 caps per box, calculating the cost per cap (e.g., $4.86 per box, or approximately $0.00486 per cap) and comparing it to bulk purchase prices from major retailers or other government contracts provides critical insight. If this price is significantly lower than market averages, it suggests excellent value. If it's higher, it may indicate inefficiencies in the procurement process, higher quality standards, or a lack of sufficient competition. This benchmarking is a cornerstone of federal spending analysis.

What is the track record of F & M Micro Products Inc. in fulfilling federal contracts for similar disposable supplies?

Assessing the track record of F & M Micro Products Inc. is vital for understanding potential risks and ensuring reliable performance. Reviewing their past federal contract history, particularly for items like paper caps, hairnets, or other disposable food service supplies, can reveal their ability to meet delivery schedules, quality standards, and contract terms. Data on past performance ratings, any instances of contract disputes, or delivery delays would be informative. A history of successful, on-time deliveries and positive performance reviews would indicate a lower risk for this current contract, while a pattern of issues might warrant closer monitoring by the GSA.

What are the specific food safety or hygiene standards these paper caps must meet, and how is compliance verified?

The specific food safety and hygiene standards that these paper food handler caps must meet are critical for ensuring public health and regulatory compliance. Typically, such items would need to comply with Food and Drug Administration (FDA) regulations for food contact materials and general hygiene practices. Verification of compliance often involves manufacturer certifications, product testing, and potentially government inspections. Understanding these requirements helps determine if the contract price adequately reflects the necessary quality and safety measures, and it informs the oversight needed to ensure the contractor consistently meets these standards throughout the contract period.

Are there opportunities for consolidation or alternative solutions to reduce spending on disposable food handler caps in the long term?

Exploring opportunities for consolidation or alternative solutions is a key aspect of long-term cost reduction in federal spending. For disposable items like paper caps, agencies could investigate reusable alternatives if feasible and cost-effective after accounting for laundering and maintenance. Furthermore, consolidating demand across multiple federal facilities or agencies could lead to larger volume discounts. Analyzing usage patterns and exploring innovative materials or designs for disposable caps might also yield savings. Proactive strategic sourcing and category management are essential to identify such efficiencies beyond individual contract awards.

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: $4,859

Exercised Options: $4,859

Current Obligation: $4,859

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline