GSA awards $3.6M contract for specialized tools, highlighting domestic manufacturing and fixed-price adjustments

Contract Overview

Contract Amount: $3,600 ($3.6K)

Contractor: American KAL Enterprises, Inc

Awarding Agency: General Services Administration

Start Date: 2026-04-01

End Date: 2026-04-12

Contract Duration: 11 days

Daily Burn Rate: $327/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 22

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT

Sector: Other

Official Description: CUTTER, CABLE, HAND OPERATED; MSP; 75. PRODUCT MADE IN USA. PLEASE SEE IPD OR LONG DESCRIPTION FOR FURTHER DETAILS.

Place of Performance

Location: BALDWIN PARK, LOS ANGELES County, CALIFORNIA, 91706

State: California Government Spending

Plain-Language Summary

General Services Administration obligated $3,600 to AMERICAN KAL ENTERPRISES, INC for work described as: CUTTER, CABLE, HAND OPERATED; MSP; 75. PRODUCT MADE IN USA. PLEASE SEE IPD OR LONG DESCRIPTION FOR FURTHER DETAILS. Key points: 1. Contract focuses on specialized tools, indicating a need for precision manufacturing capabilities. 2. Product is made in the USA, aligning with federal sourcing preferences. 3. Fixed-price contract with economic price adjustment offers some cost certainty while accounting for market fluctuations. 4. The contract duration of 11 days suggests a need for rapid fulfillment or a specific, short-term requirement. 5. Awarded by the General Services Administration (GSA), a key agency for federal procurement. 6. The North American Industry Classification System (NAICS) code 333514 points to a niche manufacturing sector.

Value Assessment

Rating: fair

The contract value of $3,600 for a 11-day duration appears reasonable for specialized tooling. However, without specific details on the exact nature and quantity of the 'CUTTER, CABLE, HAND OPERATED; MSP; 75' product, a precise value-for-money assessment is challenging. Benchmarking against similar specialized tool procurements would be necessary for a more definitive evaluation. The economic price adjustment clause introduces a variable that could impact the final cost.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. This suggests a competitive environment, which typically leads to better price discovery and potentially lower costs for the government. The presence of 22 offers further reinforces the competitive nature of this procurement.

Taxpayer Impact: Full and open competition generally benefits taxpayers by ensuring the government receives competitive pricing and access to a wide range of qualified suppliers.

Public Impact

Federal agencies requiring specialized hand-operated cutting tools will benefit from this contract. The contract supports the manufacturing sector, specifically those involved in tool and die production. Production in the USA ensures domestic job creation and adherence to quality standards. The contract facilitates the acquisition of essential tools for various operational needs within the federal government.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The short duration of the contract (11 days) might indicate a potential for urgent needs or a limited scope, requiring careful management to ensure timely delivery.
The economic price adjustment (EPA) clause introduces a degree of cost uncertainty, which needs to be monitored to prevent excessive price increases.
Lack of detailed product specifications in the provided data makes it difficult to fully assess the value and suitability of the awarded items.

Positive Signals

Awarded under full and open competition with 22 offers, indicating a robust and competitive marketplace.
Product is manufactured in the USA, supporting domestic industry and potentially higher quality standards.
The contract is with American Kal Enterprises, Inc., a known entity in the manufacturing space.

Sector Analysis

This contract falls within the specialized manufacturing sector, specifically the production of tools, dies, jigs, and fixtures. The NAICS code 333514 represents a niche market focused on precision engineering and manufacturing. Federal spending in this area supports the operational readiness and maintenance needs of various government functions, from research and development to infrastructure maintenance. Comparable spending benchmarks would involve analyzing procurements for similar specialized tooling across different federal agencies.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract. As it was awarded under full and open competition, small businesses had the opportunity to compete. However, without further information on subcontracting plans or the participation of small businesses as prime contractors or subcontractors, the direct impact on the small business ecosystem remains unclear.

Oversight & Accountability

The General Services Administration (GSA) typically has robust oversight mechanisms for its procurements, including contract administration and compliance checks. The Federal Acquisition Service (FAS) manages many of these contracts. Transparency is generally maintained through public contract databases like FPDS. Inspector General oversight would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Federal Supply Schedule (FSS) contracts
Procurements for industrial equipment
Manufacturing and production supplies
Tools and hardware acquisition

Risk Flags

Potential for price volatility due to Economic Price Adjustment (EPA) clause.
Short contract duration may pose delivery risks.
Limited product detail requires further investigation for full value assessment.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $3,600 to AMERICAN KAL ENTERPRISES, INC. CUTTER, CABLE, HAND OPERATED; MSP; 75. PRODUCT MADE IN USA. PLEASE SEE IPD OR LONG DESCRIPTION FOR FURTHER DETAILS.

Who is the contractor on this award?

The obligated recipient is AMERICAN KAL ENTERPRISES, INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $3,600.

What is the period of performance?

Start: 2026-04-01. End: 2026-04-12.

What is the specific nature and quantity of the 'CUTTER, CABLE, HAND OPERATED; MSP; 75' product being procured?

The provided data snippet is limited and does not detail the exact specifications, model numbers, or quantities of the 'CUTTER, CABLE, HAND OPERATED; MSP; 75' product. The abbreviation 'MSP' and the number '75' likely refer to specific product attributes or classifications within the manufacturer's catalog or a broader industry standard. To understand the precise nature of the procurement, one would need to consult the Integrated Product Data (IPD) or the long description mentioned in the data. This information is crucial for a thorough value assessment and to understand the operational context of the purchase.

How does the economic price adjustment (EPA) clause typically function in contracts of this nature?

An Economic Price Adjustment (EPA) clause is designed to protect both the contractor and the government from significant fluctuations in the cost of labor or materials. In this contract, the EPA would allow for an upward or downward adjustment of the contract price based on pre-defined economic indicators or indices, such as the Consumer Price Index (CPI) or specific industry cost data. The exact mechanism for adjustment, the base period, and the limits on adjustments would be detailed in the contract's full terms and conditions. This clause aims to maintain the contractor's profit margin while preventing the government from overpaying due to unforeseen market shifts.

What is the typical track record of American Kal Enterprises, Inc. in federal contracting?

American Kal Enterprises, Inc. has a history of federal contracting, primarily through the General Services Administration (GSA). Their awards often fall within the manufacturing and industrial supplies categories, aligning with their expertise in tool and die production. While specific performance metrics are not detailed here, their consistent engagement with federal procurement suggests a capacity to meet government requirements. A deeper analysis of their past performance, including on-time delivery rates, quality compliance, and any past disputes or corrective actions, would provide a more comprehensive understanding of their track record.

How does the $3,600 value compare to similar procurements for specialized hand tools?

The $3,600 contract value for specialized hand tools, especially those made in the USA, appears to be on the lower end for a federal contract. However, its significance is tied to the specific type and quantity of tools. If this is for a small batch of highly specialized, custom-made cutters or a specific component, the price could be justified. If it represents a larger quantity or more standard items, it might indicate a very competitive bidding process or a limited scope. Benchmarking against other GSA Schedule or open market procurements for similar NAICS codes (like 333514) and product descriptions would be necessary for a precise comparison.

What are the potential risks associated with a contract having a 11-day duration and an EPA clause?

A contract with a very short duration of 11 days, especially for manufactured goods, carries risks related to timely delivery and potential production bottlenecks. The government needs to ensure the contractor can meet this rapid turnaround. The Economic Price Adjustment (EPA) clause introduces cost uncertainty; if market prices for raw materials or labor increase significantly during the contract period, the final cost to the government could exceed the initial $3,600 estimate. Conversely, if prices decrease, the government benefits. The risk lies in managing the potential for price volatility and ensuring the EPA mechanism is applied fairly and transparently.

What does the 'PRODUCT MADE IN USA' designation imply for this contract?

The 'PRODUCT MADE IN USA' designation signifies compliance with domestic sourcing preferences mandated by various federal regulations, such as the Buy American Act. This policy aims to support the U.S. economy, create domestic jobs, and ensure a certain level of quality and supply chain security. For this specific contract, it means the specialized tools procured are manufactured within the United States. This can sometimes lead to slightly higher costs compared to foreign-made alternatives, but it aligns with federal procurement goals focused on supporting domestic industries and national interests.

Industry Classification

NAICS: Manufacturing › Metalworking Machinery Manufacturing › Special Die and Tool, Die Set, Jig, and Fixture Manufacturing

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

Address: 4265 PUENTE AVE, BALDWIN PARK, CA, 91706

Business Categories: Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Minority Owned Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $3,600

Exercised Options: $3,600

Current Obligation: $3,600

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47QSHA21A0001

IDV Type: BPA

Timeline