GSA awards $11.18M contract for hardware tools, highlighting potential for economic price adjustments

Contract Overview

Contract Amount: $11,177 ($11.2K)

Contractor: Wright Tool Company, LLC

Awarding Agency: General Services Administration

Start Date: 2025-10-01

End Date: 2025-10-10

Contract Duration: 9 days

Daily Burn Rate: $1.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 22

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT

Sector: Other

Official Description: TOOL KIT, INDIVIDUAL DEPLOYMENT: - SEE ATTACHEDDOCUMENT FOR DETAIL.

Place of Performance

Location: WARREN, MACOMB County, MICHIGAN, 48091

State: Michigan Government Spending

Plain-Language Summary

General Services Administration obligated $11,176.96 to WRIGHT TOOL COMPANY, LLC for work described as: TOOL KIT, INDIVIDUAL DEPLOYMENT: - SEE ATTACHEDDOCUMENT FOR DETAIL. Key points: 1. Contract value of $11.18 million for hardware tools. 2. Awarded through full and open competition, suggesting a competitive marketplace. 3. Fixed-price contract with economic price adjustment (EPA) introduces potential for cost fluctuations. 4. Contract duration is 9 months, indicating a short-term need. 5. The award is a BPA Call, suggesting it's part of a larger framework agreement. 6. The contractor, Wright Tool Company, LLC, is a key supplier in this category.

Value Assessment

Rating: fair

The contract value of $11.18 million for hardware tools over 9 months appears reasonable given the scope. However, the inclusion of an economic price adjustment (EPA) clause introduces uncertainty regarding the final cost. Without specific details on the base pricing and the EPA formula, a definitive value-for-money assessment is challenging. Benchmarking against similar GSA schedule awards for hardware would provide better context on unit pricing and overall cost-effectiveness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The presence of 22 bids suggests a healthy level of competition for this requirement. This competitive process is expected to drive more favorable pricing and terms for the government compared to less competitive solicitations.

Taxpayer Impact: The robust competition ensures that taxpayer dollars are likely being used efficiently, as vendors vied to offer the best value. This process helps prevent overpayment and encourages market-driven pricing.

Public Impact

Federal agencies requiring hardware tools will benefit from this contract. Services delivered include the provision of various hardware tools. The geographic impact is primarily within Michigan, where the contractor is located, but likely serves federal entities nationwide. Workforce implications are minimal, primarily related to the supply chain and distribution of tools.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Economic Price Adjustment (EPA) clause could lead to costs exceeding initial estimates.
Short contract duration (9 months) may necessitate frequent re-competition and potential disruption.
Limited detail in the provided data makes a thorough risk assessment difficult.

Positive Signals

Awarded through full and open competition, indicating a competitive process.
The contractor, Wright Tool Company, LLC, is likely experienced in providing hardware tools.
The BPA Call mechanism suggests an established relationship and streamlined procurement process.

Sector Analysis

The hardware merchant wholesalers sector is a critical component of the industrial supply chain, providing essential goods to various industries, including government. This contract falls within the broader category of industrial and commercial machinery and equipment. Spending in this sector by the federal government is consistent, supporting operational needs across numerous agencies. Benchmarks for similar GSA Schedule awards for hardware tools would typically range from thousands to millions of dollars annually, depending on the scope and duration.

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). While Wright Tool Company, LLC is the prime contractor, there is no explicit information on subcontracting plans with small businesses. The impact on the small business ecosystem would depend on whether Wright Tool Company engages small businesses in its supply chain or subcontracting efforts.

Oversight & Accountability

Oversight for this contract would primarily fall under the General Services Administration (GSA), specifically the Federal Acquisition Service. As a BPA Call, it is governed by the terms of the underlying Blanket Purchase Agreement. Accountability is maintained through contract performance monitoring and adherence to the fixed-price with EPA terms. Transparency is facilitated by public contract databases, though detailed performance metrics are not provided here.

Related Government Programs

GSA Schedules Program
Federal Strategic Sourcing Initiative
Defense Logistics Agency (DLA) Supply Chain Management
General Services Administration (GSA) Acquisition Policy

Risk Flags

Economic Price Adjustment (EPA) clause introduces cost uncertainty.
Short contract duration may lead to frequent re-competition.
Limited data provided for in-depth risk assessment.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $11,176.96 to WRIGHT TOOL COMPANY, LLC. TOOL KIT, INDIVIDUAL DEPLOYMENT: - SEE ATTACHEDDOCUMENT FOR DETAIL.

Who is the contractor on this award?

The obligated recipient is WRIGHT TOOL COMPANY, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $11,176.96.

What is the period of performance?

Start: 2025-10-01. End: 2025-10-10.

What is the historical spending pattern for hardware tools by the General Services Administration?

Historical spending data for hardware tools by the GSA would reveal trends in procurement volume, average contract values, and the types of tools most frequently acquired. Analyzing this data over several fiscal years can identify periods of increased or decreased demand, potentially linked to broader government initiatives or economic conditions. It also helps in understanding the typical contract durations and competition levels seen in this category. For instance, a review might show a steady demand for basic tools, with spikes in spending related to specific infrastructure projects or agency reorganizations. Understanding these patterns allows for better budget forecasting and strategic sourcing within the GSA.

How does the pricing of this contract compare to similar hardware tool procurements?

Comparing the pricing of this $11.18 million contract for hardware tools to similar procurements requires access to detailed pricing data for comparable contracts. Key metrics would include unit prices for specific tools (e.g., wrenches, hammers, pliers), volume discounts, and the impact of economic price adjustments. Benchmarking against GSA Schedule contracts or other agency awards for similar items would reveal if Wright Tool Company's pricing is competitive. Factors like the specific mix of tools, delivery terms, and the inclusion of an EPA clause can influence price differences. A preliminary assessment suggests the fixed-price with EPA structure introduces variability, making direct comparison challenging without understanding the baseline pricing and the potential escalation.

What is Wright Tool Company, LLC's track record with federal contracts?

Wright Tool Company, LLC has a track record of securing federal contracts, as evidenced by this award. A deeper analysis would involve examining their contract history, including the types of goods and services provided, contract values, performance ratings, and any past performance issues or disputes. Federal procurement databases can provide this information. A positive track record with consistent performance and timely delivery suggests reliability. Conversely, a history of contract terminations, performance deficiencies, or significant overruns might raise concerns about their capacity to fulfill this current requirement effectively. Understanding their past performance is crucial for assessing the risk associated with this award.

What are the potential risks associated with the economic price adjustment (EPA) clause in this contract?

The primary risk associated with the Economic Price Adjustment (EPA) clause is the potential for the final contract cost to exceed the initially estimated $11.18 million. EPAs are designed to account for fluctuations in the cost of labor, materials, or other economic factors. However, if market conditions lead to significant price increases for the hardware tools or their components, the government could end up paying substantially more than anticipated. This uncertainty makes budget planning more difficult and could strain agency funding. The specific formula or index used in the EPA clause is critical; a poorly defined or overly broad adjustment mechanism increases the risk of uncontrolled cost escalation.

How effective is the full and open competition process in ensuring value for this hardware tools contract?

The full and open competition process is generally considered highly effective in ensuring value for government contracts, including this hardware tools procurement. By allowing all responsible sources to submit bids, it fosters a competitive environment where vendors strive to offer the best combination of price, quality, and service. The fact that 22 bids were received indicates strong market interest and a robust competition. This level of competition typically drives down prices and encourages innovation. While the EPA clause introduces some cost uncertainty, the initial competitive bidding process sets a baseline price that is likely advantageous to the government compared to sole-source or limited competition scenarios.

Industry Classification

NAICS: Wholesale Trade › Hardware, and Plumbing and Heating Equipment and Supplies Merchant Wholesalers › Hardware Merchant Wholesalers

Product/Service Code: HAND TOOLS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 22

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

Evaluated Preference: NONE

Contractor Details

Parent Company: Federal Resources Supply Company LLC

Address: 24680 MOUND RD, WARREN, MI, 48091

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

Financial Breakdown

Contract Ceiling: $11,177

Exercised Options: $11,177

Current Obligation: $11,177

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47QSHA21A000D

IDV Type: BPA

Timeline