National Gallery of Art awards $8.5M purchase order for forklift batteries, raising value-for-money questions

Contract Overview

Contract Amount: $8,538 ($8.5K)

Contractor: Larry T. Weiss CO., Inc.

Awarding Agency: National Gallery of Art

Start Date: 2026-04-01

End Date: 2026-08-01

Contract Duration: 122 days

Daily Burn Rate: $70/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FORKLIFT BATTERIES

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20565

State: District of Columbia Government Spending

Plain-Language Summary

National Gallery of Art obligated $8,538.22 to LARRY T. WEISS CO., INC. for work described as: FORKLIFT BATTERIES Key points: 1. The contract value of $8.5 million for forklift batteries appears high relative to the duration and quantity. 2. Limited competition for this purchase order warrants scrutiny regarding potential price inflation. 3. The firm fixed-price contract type offers cost certainty but may not reflect market fluctuations. 4. The absence of small business participation is noted, with no set-aside provisions. 5. The National Gallery of Art is the sole obligating agency for this procurement. 6. The procurement method, 'NOT COMPETED UNDER SAP', suggests a lack of competitive bidding. 7. The contract duration of 122 days is relatively short for such a significant expenditure.

Value Assessment

Rating: questionable

The $8.5 million award for forklift batteries over a 122-day period seems disproportionately high. Without detailed specifications on battery type, quantity, and expected lifespan, a direct comparison is difficult. However, typical industrial forklift batteries can range from a few hundred to a few thousand dollars each. Even with a large fleet, the total cost raises concerns about whether the Gallery secured the best possible value. The lack of competition further complicates the assessment of fair pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed under Simplified Acquisition Procedures (SAP), indicating it was likely procured through a sole-source or limited competition method. The data explicitly states 'NOT COMPETED UNDER SAP', which typically implies a justification for other than full and open competition. The absence of multiple bidders means the Gallery did not benefit from a competitive bidding process, which usually drives down prices and encourages innovation.

Taxpayer Impact: The lack of competition means taxpayers may have paid a premium for these forklift batteries, as there was no market pressure to ensure the lowest possible price.

Public Impact

The primary beneficiaries are the National Gallery of Art's operations, ensuring the functionality of its material handling equipment. The services delivered are the provision of essential forklift batteries, crucial for logistics and maintenance within the museum. The geographic impact is localized to the District of Columbia, where the National Gallery of Art is situated. There are no direct workforce implications mentioned, as this is a procurement of goods rather than services requiring new personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

High contract value for a short duration raises concerns about potential overpricing.
Lack of competitive bidding limits price discovery and may lead to inflated costs.
The 'NOT COMPETED UNDER SAP' designation suggests a departure from standard competitive procurement practices.
No small business participation or set-aside provisions were utilized.

Positive Signals

Firm fixed-price contract provides cost certainty for the agency.
The contract is for essential operational equipment, ensuring continued functionality.
The award is to a single, established vendor, potentially indicating a known supplier relationship.

Sector Analysis

The procurement falls under the industrial machinery and equipment repair and maintenance sector (NAICS 811310). This sector includes a wide range of services for commercial and industrial equipment. While forklift batteries are a specific component, their procurement is tied to the operational needs of institutions like museums. Spending benchmarks for such specialized equipment can vary widely based on quantity, type, and service agreements. The $8.5 million figure for batteries alone is notable and warrants comparison with similar institutional procurements.

Small Business Impact

This contract does not appear to include any small business set-aside provisions, as indicated by 'sb': false. Furthermore, the 'co' field lists 'LARRY T.rsquo; WEISS CO., INC.', which may or may not be a small business itself, but the contract type does not reflect a specific effort to engage small businesses. This means opportunities for subcontracting with small businesses are not explicitly mandated or encouraged by the contract structure.

Oversight & Accountability

Oversight for this contract would primarily fall under the National Gallery of Art's internal procurement and financial management systems. As a federal agency, it is subject to oversight by the Government Accountability Office (GAO) and potentially the Office of Inspector General (OIG) for broader issues of waste, fraud, or abuse. Transparency is limited due to the lack of competitive bidding, making it harder for the public to assess the fairness of the transaction.

Related Government Programs

Museum Operations Equipment
Industrial Machinery Procurement
Federal Fleet Maintenance
Specialty Battery Supply Contracts

Risk Flags

High Contract Value
Lack of Competition
Unclear Value for Money
Short Contract Duration for High Spend

Frequently Asked Questions

What is this federal contract paying for?

National Gallery of Art awarded $8,538.22 to LARRY T. WEISS CO., INC.. FORKLIFT BATTERIES

Who is the contractor on this award?

The obligated recipient is LARRY T. WEISS CO., INC..

Which agency awarded this contract?

Awarding agency: National Gallery of Art (National Gallery of Art).

What is the total obligated amount?

The obligated amount is $8,538.22.

What is the period of performance?

Start: 2026-04-01. End: 2026-08-01.

What specific type and quantity of forklift batteries are being procured for $8.5 million?

The provided data does not specify the exact type (e.g., lead-acid, lithium-ion) or quantity of forklift batteries. It only indicates the total contract value ($8,538,220) and the duration (122 days). To assess value for money, detailed specifications regarding battery capacity, voltage, lifespan, warranty, and the number of forklifts requiring these batteries are essential. Without this information, it is difficult to benchmark the per-unit cost or determine if the price is reasonable for the expected performance and longevity.

How does the $8.5 million cost compare to historical spending on forklift batteries by the National Gallery of Art or similar institutions?

Historical spending data for forklift batteries at the National Gallery of Art or comparable institutions is not provided in the dataset. However, $8.5 million for batteries over approximately four months is exceptionally high. Typical industrial forklift batteries can cost anywhere from $1,000 to $5,000 or more, depending on size and technology. Even for a large fleet, this expenditure suggests either an unusually high number of forklifts, extremely specialized or high-performance batteries, or potentially a significant overpricing issue, especially given the lack of competition.

What is the justification for procuring these batteries on a non-competed basis under SAP?

The data indicates the contract was 'NOT COMPETED UNDER SAP'. This designation typically means the procurement did not follow the standard procedures for competitive bidding, often reserved for purchases below certain dollar thresholds or when specific justifications for other than full and open competition are met (e.g., sole-source availability, urgent need). Without further details on the justification cited by the National Gallery of Art, it is presumed that either only one source was available, or there were other specific circumstances that precluded a competitive process. This lack of competition is a primary driver for value-for-money concerns.

What are the potential risks associated with a sole-source or limited-competition procurement for essential equipment like forklift batteries?

The primary risk associated with sole-source or limited-competition procurement is the potential for inflated prices due to the absence of market competition. The contractor faces less pressure to offer competitive pricing or superior terms. Other risks include limited access to innovative solutions or technologies that might be offered by other vendors, and potential difficulties in securing timely delivery or adequate support if the chosen vendor has capacity constraints. For essential equipment, reliance on a single source can also create vulnerabilities if that source encounters business disruptions.

What is the expected lifespan and performance of these batteries, and how does it factor into the overall value proposition?

The provided data does not include information on the expected lifespan or performance metrics of the forklift batteries. This is a critical omission when evaluating the value for money. A higher upfront cost might be justified if the batteries offer significantly longer operational life, reduced maintenance, or improved energy efficiency compared to lower-cost alternatives. Without these details, the $8.5 million expenditure appears high, and the long-term value proposition remains unclear. The firm fixed-price nature suggests the contractor bears some risk, but the benchmark for value is missing.

Are there any performance standards or service level agreements (SLAs) associated with this contract to ensure battery reliability and uptime?

The provided data does not specify whether performance standards or Service Level Agreements (SLAs) are included in this contract. For a significant expenditure on critical operational equipment like forklift batteries, SLAs are crucial. They would typically outline requirements for battery performance (e.g., charge duration, cycle life), uptime guarantees, response times for maintenance or replacement, and potentially penalties for non-compliance. The absence of such details in the summary data makes it difficult to assess how the National Gallery of Art is ensuring the reliability and effectiveness of the procured batteries.

Industry Classification

NAICS: Other Services (except Public Administration) › Commercial and Industrial Machinery and Equipment (except Automotive and Electronic) Repair and Maintenance › Commercial and Industrial Machinery and Equipment (except Automotive and Electronic) Repair and Maintenance

Product/Service Code: ELECTRIC WIRE, POWER DISTRIB EQPT

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 7011 TROY HILL DR, ELKRIDGE, MD, 21075

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

Financial Breakdown

Contract Ceiling: $8,538

Exercised Options: $8,538

Current Obligation: $8,538

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline