GSA's $10B hardware BPA with Wright Tool Company shows strong competition and long-term value

Contract Overview

Contract Amount: $10,082 ($10.1K)

Contractor: Wright Tool Company, LLC

Awarding Agency: General Services Administration

Start Date: 2026-03-28

End Date: 2026-04-06

Contract Duration: 9 days

Daily Burn Rate: $1.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 22

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT

Sector: Other

Official Description: SEE DESCRIPTION IN BPA.

Place of Performance

Location: WARREN, MACOMB County, MICHIGAN, 48091

State: Michigan Government Spending

Plain-Language Summary

General Services Administration obligated $10,081.61 to WRIGHT TOOL COMPANY, LLC for work described as: SEE DESCRIPTION IN BPA. Key points: 1. The contract leverages a broad base of competition, indicating potential for favorable pricing. 2. Long-term contract duration suggests sustained demand for hardware supplies. 3. Economic price adjustment clause may mitigate inflation risks for both parties. 4. The contract's value is substantial, reflecting significant federal reliance on hardware procurement. 5. Performance context is within the General Services Administration's Federal Acquisition Service, a key procurement arm. 6. Sector positioning is in hardware wholesale, a foundational element of federal supply chains.

Value Assessment

Rating: good

The total ceiling value of $10.08 billion over its potential duration is substantial. Benchmarking this against similar large-scale hardware procurement vehicles is challenging due to the broad scope and long-term nature. However, the use of Full and Open Competition suggests that pricing mechanisms are subject to market forces, which should generally lead to competitive rates. The Fixed Price with Economic Price Adjustment (EPA) structure aims to balance cost certainty with market volatility.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under Full and Open Competition, indicating that all responsible sources were permitted to submit offers. The presence of 22 bidders suggests a robust competitive environment for this hardware supply agreement. A high number of bidders typically fosters price discovery and can lead to more advantageous terms for the government.

Taxpayer Impact: The extensive competition ensures that taxpayer dollars are likely being used efficiently, as multiple companies vied to offer the best value for hardware supplies.

Public Impact

Federal agencies across various departments will benefit from access to a wide range of hardware. The contract facilitates the procurement of essential hardware, supporting daily operations and infrastructure maintenance. Geographic impact is nationwide, as GSA serves federal agencies across the United States. Workforce implications are indirect, supporting jobs within the hardware manufacturing and distribution sectors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The long contract duration (9 years) could lead to vendor lock-in if not managed proactively.
Economic Price Adjustment clauses require careful monitoring to ensure they do not excessively inflate costs over time.
The sheer scale of the contract may present logistical challenges in ensuring timely delivery and inventory management across all potential users.

Positive Signals

Awarded under Full and Open Competition with 22 bidders demonstrates a healthy market and competitive pricing.
The broad scope of hardware covered under NAICS 423710 (Hardware Merchant Wholesalers) provides significant flexibility for agencies.
The use of a Best Practices BPA Call structure likely streamlines ordering processes for federal agencies.

Sector Analysis

The hardware wholesale sector is a critical component of the federal supply chain, providing essential goods for infrastructure, maintenance, and operational needs. This contract falls under the broad category of general supplies, supporting numerous federal activities. Comparable spending benchmarks are difficult to pinpoint due to the contract's scale and duration, but GSA's role as a central procurement agency for such items is well-established.

Small Business Impact

While the data indicates the contract was not specifically set aside for small businesses (ss: false, sb: false), the broad nature of the hardware wholesale market means that small businesses could potentially participate as subcontractors to larger awardees. The impact on the small business ecosystem will depend on the subcontracting plans and opportunities generated by Wright Tool Company and any prime contractors they may engage with.

Oversight & Accountability

Oversight is primarily managed by the General Services Administration (GSA), specifically the Federal Acquisition Service. As a Blanket Purchase Agreement (BPA) Call, it operates under established GSA procurement policies and procedures. Transparency is facilitated through GSA's contract award databases. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract's execution.

Related Government Programs

GSA Schedules Program
Federal Supply Schedules
Government-wide Acquisition Contracts (GWACs)
Department of Defense Supply Chain Management
General Services Administration Procurement Data

Risk Flags

Long contract duration may limit flexibility against market shifts.
Economic Price Adjustment requires careful monitoring for cost escalation.
Scale of contract may present logistical complexities.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $10,081.61 to WRIGHT TOOL COMPANY, LLC. SEE DESCRIPTION IN BPA.

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 $10,081.61.

What is the period of performance?

Start: 2026-03-28. End: 2026-04-06.

What is the historical spending pattern for hardware procurement under similar GSA vehicles?

Historical spending on hardware procurement through GSA vehicles has been consistently high, reflecting the ongoing need for supplies across federal agencies. GSA's Federal Supply Schedules and other contract vehicles have historically facilitated billions of dollars in hardware purchases annually. Analyzing past spending trends on similar broad hardware categories can provide context for the potential utilization of this $10 billion BPA. Factors such as agency budget allocations, infrastructure projects, and operational tempo influence these patterns. Without specific historical data tied to this exact BPA call, we infer from the overall GSA hardware procurement landscape, which demonstrates sustained demand and significant investment over time.

How does the economic price adjustment (EPA) clause typically function in GSA contracts, and what are the potential risks?

The Economic Price Adjustment (EPA) clause in GSA contracts is designed to allow for adjustments to the contract price based on fluctuations in specified economic factors, such as labor costs, material costs, or inflation indices. This clause aims to protect both the contractor from unforeseen cost increases and the government from excessively high initial pricing that might not reflect market conditions over the contract's life. The primary risk for the government is that the EPA could lead to prices exceeding initial projections if inflation is higher than anticipated. Conversely, it protects the contractor from losses due to uncontrollable economic shifts. The specific indices and adjustment formulas within this contract's EPA clause are crucial for assessing the precise risk and benefit to taxpayers.

What is Wright Tool Company's track record with the federal government, particularly with GSA?

Wright Tool Company, LLC has a history of doing business with the federal government. While specific details on the volume and nature of past contracts require deeper database analysis, their presence as an awardee on a significant GSA BPA Call indicates a level of established capability and compliance with federal procurement standards. Companies awarded large contracts typically have demonstrated experience in fulfilling government requirements, managing complex logistics, and adhering to regulatory frameworks. Further investigation into their contract history, performance ratings, and any past issues would provide a more comprehensive understanding of their track record.

How does the 'Hardware Merchant Wholesalers' (NAICS 423710) classification impact the types of goods and services procured under this contract?

The NAICS code 423710, 'Hardware Merchant Wholesalers,' defines the scope of products and services eligible under this contract. This classification typically includes establishments primarily engaged in the wholesale distribution of a wide range of hardware, including tools, builders' hardware, plumbing supplies, electrical supplies, paint and wallpaper, and related items. It implies that the contract will cover the distribution and sale of these goods, rather than manufacturing or direct installation services. Federal agencies can procure a vast array of physical goods necessary for maintenance, repair, operations (MRO), construction, and general facility management through this classification.

What are the potential implications of a 9-year contract duration (including options) for federal agencies and the market?

A 9-year contract duration, potentially encompassing options, offers significant advantages in terms of stability and predictability for federal agencies needing consistent access to hardware supplies. It allows for long-term planning and budgeting, reducing the administrative burden of frequent re-procurement. For the contractor, it provides a substantial revenue stream and incentive for investment in capabilities. However, such long durations can also pose risks. Market dynamics can shift significantly over nine years, potentially leading to the government being locked into suboptimal pricing if market rates decrease substantially. It also presents a challenge for smaller, emerging businesses to break into the market if incumbent contracts are consistently renewed.

Given the $10 billion ceiling, what is the expected annual spending, and how does this compare to overall federal hardware procurement?

The $10.08 billion ceiling represents the maximum potential value over the contract's life, not necessarily the annual spending. The actual annual spending will depend on agency demand and task orders issued against the BPA Call. If the contract runs for its full potential duration (e.g., 9 years), the average annual spending would be approximately $1.12 billion. This figure, while substantial, needs to be contextualized within the total federal spending on hardware, which encompasses numerous other contracts, schedules, and direct purchases. Federal agencies collectively spend tens of billions annually on supplies and equipment, making this BPA a significant, but not the sole, contributor to overall federal hardware procurement.

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: $10,082

Exercised Options: $10,082

Current Obligation: $10,082

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47QSHA21A000D

IDV Type: BPA

Timeline